McDonald’s Sued for Using AI Tool to Set Prices in U.S. Franchises
· Telemundo McAllen (KTLM)
McDonald’s is facing a federal lawsuit alleging that its use of an artificial intelligence tool for pricing violates antitrust laws by sharing non-public data with franchises that may be competing in the same market. The lawsuit, filed on Friday in Illinois, claims that McDonald’s pricing tool uses AI to collect data that competing franchises typically would not share, such as store-level sales. The Chicago-based burger giant has stated that it provides the tool to its franchises in the U.S. to assist them in setting prices at their restaurants. The lawsuit also holds the system responsible for raising prices at McDonald’s locations across the country. 'The lawsuit claims that McDonald’s has built and deployed its own pricing platform over the years to share information, which draws from data from its millions of daily transactions to set menu prices at thousands of restaurants in the U.S.,' the document states. 'The result is algorithmic pricing aimed at customers who are already at their limit.'
AI summary · Source: Telemundo McAllen (KTLM) →
