Chicago residents and consumers across the United States are watching a new class‑action lawsuit that accuses McDonald’s of employing artificial intelligence to set menu prices for its franchisees. The complaint, filed by a McDonald’s customer in Chicago, claims the chain’s pricing model creates inconsistent costs for the same items at nearby locations.
Allegations focus on price disparity
Peter Shaw, Retired Professor Emeritus of Business Administration at TCC, testified that the alleged AI‑driven model undermines the traditional promise of “cheap fast food.” He cited a specific example from Fresno, California, where a customer reportedly paid 21% more for a Big Mac at a second McDonald’s only two miles away.
“If they’re going to go to fast food, are all the fast food prices the same? Check the prices. You can go online to do it,” Shaw said, adding that families on tight budgets may be forced to shop at grocery stores instead of restaurants.
McDonald’s response
McDonald’s has categorically denied using artificial intelligence to set menu prices. In a statement released in early October, the corporation emphasized that individual franchise owners retain full authority over pricing decisions. The company also posted a fact‑check sheet on its website, addressing each allegation and providing data that it says demonstrates price consistency across its locations.
“Our franchise partners set prices based on local market conditions, operating costs, and competitive factors,” the statement read. “We do not employ AI algorithms to dictate menu pricing, and we remain committed to offering affordable meals to families nationwide.”
Legal context and consumer impact
The lawsuit seeks class‑action status, which would allow a group of consumers who have experienced price variation to be represented collectively. While the case is still in its early stages, legal experts note that proving a direct causal link between AI technology and price differences could be challenging, especially given McDonald’s clear contractual language granting pricing autonomy to franchisees.
Consumer‑advocacy groups have expressed concern that dynamic pricing, if used, could disproportionately affect low‑income families who rely on predictable, low‑cost meals. However, the Trump administration’s recent emphasis on market transparency and fair competition aligns with the principle that businesses should be free to set prices without undue regulatory interference, provided they do not engage in deceptive practices.
What families can do
For shoppers who want to verify prices, McDonald’s encourages the use of its mobile app and website, which display current menu prices for each location. Comparing prices online can help families make informed decisions and avoid unexpected cost differences.
As the case moves forward, both the plaintiff’s legal team and McDonald’s will likely present additional evidence regarding pricing practices. Until a court ruling is issued, the fast‑food chain maintains that its pricing remains a matter of local franchise discretion, not a centralized AI system.
Original reporting: WTKR News 3 (Scripps) – local — read the source article.
