A proposed nationwide class action filed in federal court in Chicago alleges McDonald’s used an AI-powered pricing system to coordinate menu prices, Reuters reported and the complaint cited. The complaint names Michael Thomas as the plaintiff and seeks to represent millions of U.S. customers.
Reuters reported the lawsuit was filed on Oct. 2 and says the complaint alleges McDonald’s used machine‑learning algorithms trained on nonpublic data to recommend prices across nearly 14,000 U.S. restaurants.
McDonald’s has disputed the allegations. In a company statement quoted by Reuters, McDonald’s said “AI does not set the price of a Big Mac or any other menu item” and that franchisees make their own pricing decisions.
Reuters and other coverage draw on an earlier Reuters investigation that described a pricing engine that analyzes millions of daily transactions and estimates “customer willingness to pay” at each restaurant, and that some franchisees told Reuters they felt pressured to use the recommendations.
The complaint cited the Reuters reporting and frames the tool’s centralisation of franchise data as “algorithmic price‑fixing.” McDonald’s told Reuters the portal is a tool and that franchisees remain free to set final prices.
Industry observers say algorithmic pricing raises antitrust questions when independent businesses share nonpublic data or follow centrally issued recommendations, a point Reuters explored with legal experts and franchisee accounts.
The article will follow how the Chicago case proceeds and how courts treat claims that AI recommendations can amount to coordination; McDonald’s has said it will vigorously defend itself, per Reuters.
Sources
- Reuters — the class-action filing details, quote from McDonald’s and that the complaint cited Reuters reporting.
- Reuters — investigative reporting on McDonald’s machine‑learning pricing engine, how it works and franchisee accounts.
- Gadgets Now / Times of India — summary of the lawsuit and context on alleged use of nonpublic data and franchisee pressure.
