The Economic Times

How AI triggered a federal lawsuit? McDonalds sued over AI pricing: What the Big Mac case says about franchisee independence

McDonalds is facing a federal antitrust lawsuit over its AI-powered pricing tools. Illinois resident Michael Thomas alleges the system uses shared, nonpublic data from thousands of restaurants to influence menu prices at each location. The lawsuit claims the central software uses shared sales data across 14,000 locations to coordinate prices, undercutting franchisee independence. It highlights two nearby Fresno stores charging $5.69 and $6.89 for the exact same Big Mac. McDonald's denies the allegations, stating franchisees retain total control over menu pricing.