McDonald’s is currently facing a federal lawsuit that alleges its AI-enhanced pricing tool violates antitrust laws by sharing nonpublic data with franchisees who are competing in the same market, the Associated Press reports. This legal action, filed Friday in Illinois, claims the burger giant is using artificial intelligence to collect and distribute store-level sales data that otherwise would not be shared between competitors.
The lawsuit was filed on behalf of Michael Thomas, a resident of DeKalb, Illinois, who reportedly noticed price differences between the various McDonald’s locations he visits. Thomas, who frequently orders a Quarter Pounder with cheese, french fries and a Coke, is at the center of this claim that the system is responsible for driving up menu prices across the United States.
The legal filing argues that the company has built and deployed a system that draws on millions of daily transactions to set prices. It goes on to state, “McDonald’s has built and for years deployed its own information-sharing pricing platform, which draws on data from its millions of daily transactions to set menu prices across thousands of U.S. restaurants,” followed by the claim, “The result is algorithmic price-fixing aimed at customers who are already stretched thin.”
McDonald’s has been working hard to win back lower-income consumers after seeing a drop in visits to its restaurants
McDonald’s has been experimenting with various value strategies for several years, though these efforts have faced hurdles. During an investor conference call in August, Chairman and CEO Chris Kempczinski noted that only 60% of U.S. restaurants were offering the company’s proposed menu of 10 items for under $3. Kempczinski said, “As you know, in our system, that’s not something that we just flip the switch on,” adding, “It requires conversations with franchisees.”
The company is pushing back hard against these allegations. On Tuesday, McDonald’s stated that the lawsuit is “filled with inaccuracies” and confirmed it plans to defend itself in court. The company emphasized that its franchisees, who own and operate 95% of the 14,000 U.S. locations, are the ones who ultimately set their own prices.
A company statement clarified, “AI does not set menu prices at McDonald’s restaurants – McDonald’s franchisees do.” The statement continued, “Optional tools are available to franchisees to help them make the best decisions for their businesses and customers, but these tools do not automate, coordinate or fix pricing in any way.”
According to McDonald’s, it has utilized this type of AI-enhanced tool for more than a decade to help franchisees determine optimal prices based on location, sales, and competitor activity. A company spokesman told the press, “All we do is provide the context of what’s going on,” noting, “We don’t have any way to affect the menu pricing in a restaurant.” The company also points out that it has been recommending prices to franchisees based on collected data long before this specific AI tool was adopted.
Despite these defenses, the lawsuit contends that the corporation maintains enough leverage over its franchisees to pressure them into following pricing recommendations. The legal action is asking a judge to certify the case as a class action, seeking damages for the class and an injunction to stop the company from enforcing agreements that allegedly restrict competition.
This isn’t the only legal battle McDonald’s has been facing recently. A separate lawsuit claiming that the McRib sandwich does not contain any rib meat has caught a lot of eyeballs.
Published: Oct 7, 2026 03:08 pm