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McDonald’s sued for allegedly using AI tool to determine pricing for franchises

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 market competition and push u…

By the Truvace desk2 min read1 sourceJournalismTRV-2026-1429· cite & verify
McDonald’s sued for allegedly using AI tool to determine pricing for franchises

In brief

A proposed class action filed on 2 October in federal court in Chicago accuses McDonald's of running an information-sharing pricing platform that draws on millions of daily transactions to set menu prices across thousands of restaurants. The plaintiff, an Illinois customer, says the cost of his usual order varied even within his own neighborhood.

The case matters because antitrust law requires competitors to set prices independently, and critics say AI-driven pricing could worsen affordability pressures. Much remains unresolved: McDonald's says franchisees set prices and the tools are optional, and the court has not ruled on whether the allegations are accurate.

Main points

  1. The complaint alleges the tool lets independent franchises effectively exchange nonpublic price and sales data, which would violate antitrust law.
  2. McDonald's says AI does not set menu prices and that optional tools do not automate, coordinate or fix pricing.
  3. A Reuters investigation reported some franchisees were pressured to use the tools and record deviations; McDonald's called that reporting speculative and uninformed.
  4. At least 90 bills have been filed this year to counter algorithmic price-fixing, according to Lindsay Owens of Groundwork Collaborative.

The problem

A proposed nationwide class action alleges McDonald's AI pricing platform pools nonpublic franchise price and sales data, amounting to algorithmic price-fixing that inflates menu prices for customers. McDonald's denies this.

The rundown

The lawsuit was brought by Michael Thomas of DeKalb, Illinois, a self-described price-conscious regular who noticed price differences for the same order nearby. The attorney representing him did not immediately respond to a request for comment.

McDonald's acquired the AI company Dynamic Yield in 2019 but denies using AI to set menu prices. The day before the suit, it said its tool only provides information that franchises can choose to adopt, and it denied using dynamic pricing.

The chain has faced scrutiny over prices. An $18 Big Mac meal at a Connecticut McDonald's went viral in 2023, and the franchise owner sued alleging the AI tool suggested that price. A 2024 company fact sheet said average menu item prices rose about 40% from 2019 to 2024.

Sources

  1. JournalismThe Guardian2026-10-07

The debate