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The Guardian - US
The Guardian - US
Business
Gaya Gupta

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

The golden arches outside a McDonald's
According to the company, the average price of a McDonald’s menu item increased about 40% between 2019 and 2024. Photograph: Damian Dovarganes/AP

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 up costs for consumers.

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