McDonald's sued over AI tool allegedly used for price-fixing

Summarised from 2 outlets · Updated 7 Oct, 12:24 · Archive

McDonald's faces an antitrust lawsuit over its use of an AI pricing tool across franchises.

McDonald's is facing a federal antitrust lawsuit alleging the company uses an AI tool to determine pricing across its independent franchises in violation of antitrust laws. The vast majority of McDonald's US stores are independently owned and individually decide on prices under company policy. Antitrust laws require businesses to set prices independently from competitors, as coordinating prices can stifle competition.

The suit says the AI tool allows independently owned franchises to exchange nonpublic price and sales information. According to Reuters, McDonald's pricing engine uses machine-learning algorithms to continually analyse data from millions of daily transactions across its nearly 14,000 restaurants. Prosecutors allege the system has unfairly inflated menu prices for Americans.

How it is being reported

• McDonald’s sued for alleged antitrust violations by using AI tool to determine pricing for franchisesSuit says AI tool allows independently owned franchises to exchange nonpublic price and sales information McDonald’s is facing a lawsuit in federal court over its alleged use of an AI tool to determine pricing across independent franchises, which prosecutors say violates antitrust laws and has unfairly inflated menu prices for Americans. The vast majority of McDonald’s US stores are independently owned and are said to individually decide on prices under company policy. Antitrust laws require businesses to set prices independently from their competitors, as coordinating prices can stifle…Guardian Business · 7 Oct, 12:00
• McDonald’s hit with lawsuit alleging AI-powered menu price-fixingReuters reported that McDonald’s pricing engine uses machine-learning algorithms to continually analyze data from millions of daily transactions across its nearly 14,000 restaurants.New York Post · 5 Oct, 23:59

In this story: McDonald's · Reuters · United States

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