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McDonald's faces Chicago class action over AI pricing tool and franchise menu prices

2 articles2 sourcessince Oct 7Last article 8h ago ·

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Illinois resident Michael Thomas filed a proposed nationwide class action in federal court in Chicago on 2 October, alleging that McDonald's AI pricing tool violates antitrust laws by coordinating menu prices across independent franchises.

The complaint says the tool effectively has franchise locations exchanging nonpublic price and sales data, and cites a Reuters report that some franchise owners were pressured to use the tools and log deviations from their recommendations.

McDonald's denies that AI sets menu prices, saying franchisees make those decisions and the tools only provide optional information. The company called the Reuters reporting "speculative and uninformed." A TechRadar report says the proposed class action covers about 14,000 US restaurants and dates back to 2019. The case is at an early stage, and the allegations are unproven.

Written by AI from the articles below · updated Oct 9, 4:02 PM ET

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The articles in this story. Times are ET.

Oct 9
  1. TechRadar · AINews
    McDonald's faces class action alleging AI-set menu prices across franchises

    AIA proposed class action alleges McDonald's and its franchisees coordinate prices set by AI algorithms at about 14,000 US restaurants, dating back to 2019. McDonald's denies the claims, saying "AI does not set the price of a Big Mac" and that franchisees set their own menu prices. The case is at an early stage, and the plaintiffs seek damages for potentially millions of consumers.

Oct 7
  1. The Guardian · AINews
    McDonald's sued over AI pricing tool allegedly used to set franchise menu prices

    AIPlaintiffs filed a proposed nationwide class action in federal court in Chicago alleging McDonald's AI pricing tool violates antitrust laws by coordinating prices across independent franchises. McDonald's denies that AI sets menu prices, saying franchisees decide and the tools only provide optional information. The complaint also cites a Reuters report that some franchise owners were pressured to use the tools and log deviations from their recommendations.

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