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

McDonald’s is facing a federal lawsuit that alleges its AI-enhanced pricing tool violates antitrust laws because it shares nonpublic data with franchisees who might be competing in the same market.

The lawsuit, which was filed Friday in Illinois, said McDonald’s pricing tool uses artificial intelligence to collect data that competing franchises wouldn’t normally share, like store-level sales. The Chicago-based burger giant has said it makes the tool available to U.S. franchisees to help them set prices at their individual restaurants.

The lawsuit also blames the pricing system for raising McDonald’s U.S. prices.

“McDonald’s has built and for years deployed its own information-sharing pricing platform, which draws on data from its millions of daily transactions to set menu prices across thousands of U.S. restaurants,” the lawsuit states. “The result is algorithmic price-fixing aimed at customers who are already stretched thin.”

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