McDonald's sued over AI tool that recommends prices to US franchisees

Key Points:

• McDonald's is facing a federal lawsuit in Illinois alleging its AI-enhanced pricing tool violates antitrust laws by sharing nonpublic sales data among competing franchisees, potentially facilitating price-fixing.
• The lawsuit claims the AI system uses detailed store-level data to set menu prices, leading to higher prices across McDonald's U.S. locations and harming consumers financially.
• McDonald's denies the allegations, stating that franchisees independently set prices and that the AI tool merely provides optional pricing recommendations without automating or coordinating prices.
• The lawsuit was filed by Michael Thomas, a frequent McDonald's customer who noticed price inconsistencies between nearby stores, and it argues McDonald's exerts strong influence over franchisees to follow its pricing guidance.
• McDonald's has used the AI pricing tool for over a decade, incorporating factors like sales, location, and competitor prices, but emphasizes that franchisees own and operate the vast majority of U.S. restaurants and make final pricing decisions.