Suit says AI tool allows independently owned franchises to exchange nonpublic price and sales information

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.

The lawsuit, filed on 2 October in a federal Chicago courtroom, alleges that McDonald’s AI tool is illegal because it amounts to independent franchise locations exchanging nonpublic price and sales data.

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[–] 1 point 7 hours ago

Guy with a good credit score and poor impulse control walks into McDonald's high as a kite. The pricing AI jizzes in its pants as it sets up a 24 month payment plan for his Big Mac menu.

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