McDonald's Sued Over AI Pricing Tool for Franchisees

McDonald's faces a federal lawsuit alleging its AI enhanced pricing tool violates antitrust law by sharing nonpublic data among competing franchisees, according to The Associated Press. The consumer lawsuit, filed Friday in Illinois, also alleges the system contributed to higher menu prices in the US.

The optional McDonald's AI pricing tool recommends menu prices based on factors including a restaurant's sales, location and competitor prices. McDonald's said it has used the system for more than a decade and provides it to franchisees, which own and operate 95% of its roughly 14,000 US restaurants.

McDonald's said franchisees set their own menu prices and that the tool does not automate, coordinate or fix them. The plaintiff seeks class action status, damages and an order preventing McDonald's from enforcing agreements that restrict competition.