A federal lawsuit filed in Chicago by Michael Thomas accuses McDonald’s of using an AI-based pricing platform to coordinate menu prices across thousands of independently owned US franchises, effectively enabling the exchange of nonpublic price and sales data and amounting to algorithmic price-fixing. The complaint frames the tool as a company-built information-sharing system that draws on millions of daily transactions to recommend prices, which plaintiffs say has contributed to sharply higher costs for consumers - McDonald’s itself reported an average menu price rise of about 40% between 2019 and 2024 - and produced stark price variation between nearby locations. A Reuters investigation is cited by plaintiffs as evidence that some franchisees were pressured to adopt the AI recommendations and to record any deviations.
McDonald’s denies that AI sets prices, calling pricing tools optional and asserting franchisees retain pricing authority; the company says the complaint contains inaccuracies and will be vigorously defended. The chain acquired personalization firm Dynamic Yield in 2019 and has faced related litigation before, including a viral $18 Big Mac incident where a franchise owner blamed an AI suggestion. Antitrust experts warn algorithmic pricing could worsen affordability, and lawmakers have proposed numerous bills this year aimed at curbing alleged algorithmic price-fixing.
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