McDonald's is facing a federal lawsuit alleging its AI-enhanced pricing tool violates antitrust laws by sharing nonpublic data among franchisees who may compete in the same market. The suit, filed Friday in Illinois on behalf of consumer Michael Thomas of DeKalb, Illinois, claims the system draws on data from millions of daily transactions to set menu prices across thousands of U.S. restaurants, amounting to what it calls algorithmic price-fixing, and also blames the tool for raising U.S. prices. McDonald's said Tuesday the lawsuit is filled with inaccuracies and that it will vigorously defend itself, stating that AI does not set menu prices at its restaurants and that franchisees do. The company said it has used an AI-enhanced pricing tool for more than a decade, and that franchisees own and operate 95% of its 14,000 U.S. stores. The lawsuit seeks class-action certification, damages, and an order preventing McDonald's from enforcing agreements that restrict competition.
McDonald’s CorporationMcDonald's faces a federal antitrust lawsuit alleging its AI pricing tool enables algorithmic price-fixing among franchisees.
