McDonald’s Faces AI Pricing Class-Action Lawsuit

McDonald’s is facing a proposed nationwide class-action lawsuit in federal court in Chicago alleging that its AI-assisted pricing system shares confidential sales data among competing franchisees and helps coordinate menu prices, raising customer costs in violation of antitrust law. The suit, brought by Illinois customer Michael Thomas, says the practice dates to 2019 and seeks to represent potentially millions of customers; Thomas says he noticed price differences among nearby restaurants. The system analyzes sales and local-market information to recommend restaurant-specific prices. McDonald’s calls the allegations inaccurate, says its optional tool does not set, coordinate or fix prices, and maintains that franchisees make the final pricing decisions. Separate reporting cited in the lawsuit alleged that some franchisees were pressured to use the system, a claim McDonald’s disputes. The claims have not been proven in court.