McDonald's Faces Antitrust Suit Over AI Pricing Tool as Menu Prices Rose 40%
Updated
Updated · The Guardian · Oct 7
McDonald's Faces Antitrust Suit Over AI Pricing Tool as Menu Prices Rose 40%
2 articles · Updated · The Guardian · Oct 7
Summary
A federal lawsuit filed Oct. 2 in Chicago accuses McDonald’s of using an AI-driven pricing platform to coordinate menu prices across thousands of U.S. franchise restaurants.
The complaint says the tool pooled nonpublic price and sales data from millions of daily transactions, amounting to algorithmic price-fixing that inflated costs for consumers.
McDonald’s denies the allegations, saying franchisees—not AI—set prices and that its optional tools do not automate, coordinate or fix pricing.
Reuters recently reported some franchisees were pressured to use the tool and log deviations from its recommendations, a characterization McDonald’s rejected.
The proposed nationwide class action lands as McDonald’s pricing has drawn scrutiny: its fact sheet said average menu prices rose about 40% from 2019 to 2024, and lawmakers have already filed at least 90 anti-algorithmic-pricing bills this year.