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[BUSINESS] · United States · 34 sources

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McDonald's faces class-action lawsuit over AI-powered pricing

McDonald's is facing a proposed nationwide class-action lawsuit filed in a Chicago federal court. The legal action, initiated by Illinois resident Michael Thomas, alleges that the company used an AI-powered pricing engine to illegally coordinate menu prices between independent franchisees and company-owned restaurants.

The lawsuit claims the system utilizes machine learning to analyze nonpublic sales data from millions of daily transactions across nearly 14,000 U.S. locations. Plaintiffs argue this practice violates antitrust laws by reducing independent competition among franchise operators, effectively facilitating algorithmic price-fixing.

Mcdonald's has denied the allegations, describing them as speculative and lacking evidence. The company maintains that its AI tools provide restaurant-specific recommendations rather than mandates, and that franchisees ultimately retain the authority to make their own independent pricing decisions.

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Chicago · Chicago Federal Court · Illinois · Lark Turner · McDonald's · McDonald’s · Michael Thomas · Reuters

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