Summary
- McDonald’s is facing a proposed nationwide class-action lawsuit in the United States over allegations that it used an artificial intelligence-powered pricing system to coordinate menu prices across its restaurants.
- The case claims that McDonald’s pricing technology allows the company to analyze large amounts of sales information and provide pricing recommendations across its extensive restaurant network.
- The lawsuit could increase scrutiny of how large companies use artificial intelligence and consumer data to influence prices, particularly in businesses that operate through extensive franchise networks.
McDonald’s is facing a proposed nationwide class-action lawsuit in the United States over allegations that it used an artificial intelligence-powered pricing system to coordinate menu prices across its restaurants.
The lawsuit was filed in federal court in Chicago and accuses the fast-food giant of violating US antitrust laws by working with independent franchisees to influence prices through algorithms trained on private business data.
The case claims that McDonald’s pricing technology allows the company to analyze large amounts of sales information and provide pricing recommendations across its extensive restaurant network.
The allegations come after reports that McDonald’s has been using machine-learning technology to analyze millions of daily transactions at its nearly 14,000 restaurants.
The lawsuit argues that independent franchise operators should be able to determine their prices separately and without coordination through a common pricing system.
McDonald’s has rejected the allegations, describing them as speculative and based on a misunderstanding of how its pricing tools work.
The company said its artificial intelligence technology does not directly determine the price of products such as the Big Mac. It maintained that franchisees remain responsible for making their own pricing decisions and said pricing analytics and recommendation systems are widely used across different industries.
The case is part of a growing wave of legal challenges in the US involving the use of algorithms and artificial intelligence in pricing. Similar lawsuits have accused companies in sectors such as hotels and housing of using technology to coordinate prices.
The plaintiff, an Illinois resident, is seeking to represent potentially millions of McDonald’s customers in the proposed class action.
The lawsuit could increase scrutiny of how large companies use artificial intelligence and consumer data to influence prices, particularly in businesses that operate through extensive franchise networks.
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