McDonald's Sued Over AI Tool That Recommends Prices to Franchisees

Thomas, who usually buys a cheeseburger, fries and a soft drink, began questioning the system after noticing price differences between nearby restaurants.

McDonald's says the AI does not set prices

The company rejects the accusations. It says its tools only offer recommendations that franchisees can accept or ignore. In a statement on its website, McDonald's insists it does not use dynamic pricing and that the AI does not automatically change what customers pay.

McDonald's also notes that about 95% of its 14,000 US restaurants are run by franchisees, who are responsible for setting their own prices. The plaintiffs counter that the company holds enough sway over those operators to pressure them into following the system's recommendations. An earlier investigation had reported that some franchisees felt such pressure, an interpretation McDonald's rejects.

What happens next

The lawsuit asks for permission to represent other affected consumers as a class and seeks compensation. No court has yet ruled on whether the tool was actually used to coordinate prices, so the allegations remain unproven.

The case adds to growing scrutiny of algorithmic pricing software, where the question is whether shared data and common recommendations can amount to coordination even when each business formally sets its own prices.