Technology
McDonald's faces US suit over AI pricing tool
Livemint··5d ago
A federal Illinois lawsuit says McDonald's AI pricing tool lets franchisees share store sales data in ways that illegally fix menu prices. Plaintiff Michael Thomas of DeKalb cited differing prices near home. McDonald's said Tuesday the suit has inaccuracies and franchisees set prices. It said optional tools do not automate, coordinate or fix pricing across restaurants.
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What It Means For You
- US diners may see different menu prices between neighbouring McDonald's locations set by franchise owners.
- A class certification ruling could widen damages claims if the Illinois case proceeds.
- Franchisees operate about 95 percent of 14,000 US McDonald's restaurants, the company said.
What's Happening
- The complaint filed Friday blames the pricing system for higher US menu costs, reports said.
- McDonald's said it has used AI-enhanced pricing recommendations for more than a decade.
- CEO Chris Kempczinski said in August that 60 percent of US stores offered a sub-$3 value menu.
What each side argues
- Thomas said he frequently orders a Quarter Pounder meal and saw varying prices locally.
- McDonald's said it only provides context from sales and location data to franchisees.
- The suit seeks damages and limits on agreements alleged to restrict competition.
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