McDonald's faces proposed class-action antitrust lawsuit over AI pricing
The suit alleges the chain and its franchisees coordinated prices recommended by AI algorithms at about 14,000 US restaurants.
McDonald's is facing a proposed class-action antitrust lawsuit over its use of dynamic AI pricing, according to Reuters. The lawsuit alleges that the chain and its independent franchise restaurants coordinated pricing, and that franchisees colluded to set prices recommended by AI algorithms, potentially inflating costs for consumers.
The suit argues that the alleged unlawful price coordination dates back to 2019. McDonald's uses its AI algorithm to set prices at roughly 14,000 restaurants in the US.
McDonald's denies the allegations. The company says AI does not set the price of a Big Mac or any other menu item, and that franchisees can decide their own menu item prices.
Reuters reported that McDonald's uses AI to recommend prices based on factors including local purchasing behavior and estimates of what consumers will pay.
Quick answers
What is the lawsuit against McDonald's about?
It is a proposed class-action antitrust lawsuit alleging that McDonald's and its independent franchise restaurants coordinated pricing, and that franchisees colluded to set prices recommended by AI algorithms.
How many McDonald's restaurants use the AI pricing algorithm?
McDonald's uses its AI algorithm to set prices at roughly 14,000 restaurants in the US.
What does McDonald's say about the allegations?
McDonald's denies the allegations, saying AI does not set the price of a Big Mac or any other menu item, and that franchisees can decide their own menu item prices.