Allegation of price matching against McDonald's using AI
A class action lawsuit has been filed against McDonald's in a Chicago federal court: the company is alleged to have illegally coordinated menu prices at its franchise and company-owned restaurants using an artificial intelligence-based system.
A nationwide class-action lawsuit has been filed against McDonald's in a Chicago federal court. According to the claim, the company unlawfully aligns menu prices between franchise and company-owned restaurants through an artificial intelligence-based pricing system.
The claim was filed on Friday. The source contains no information about the details of the case, the amount sought, or the company's official response.
The issue is relevant for networks operating under a franchise model: price management via algorithm is in the focus of competition authorities. In Azerbaijan, franchise restaurant chains should review in advance the legal justification and the pricing clauses in franchise agreements when choosing centralized pricing tools.