Local customer sues McDonald's in Illinois alleging algorithmic price-fixing
Business
McDonald's is being sued in Illinois for allegedly using an AI tool to help franchisees set prices, which a local customer claims has led to unfair price hikes at different locations.
The lawsuit argues that sharing sales data through this tool lets outlets coordinate prices, calling it "algorithmic price-fixing."
McDonald's denies algorithmic price-fixing allegations
McDonald's denies any wrongdoing, explaining that its AI tool just offers pricing suggestions based on things like sales and location: It doesn't force anyone's hand.
With 95% of US restaurants run by independent owners, the company says AI does not set menu prices at McDonald's restaurants - McDonald's franchisees do, and plans to fight the lawsuit.