An artificial intelligence tool used by a major fast-food chain is now involved in a federal lawsuit concerning price-fixing allegations.
Michael Thomas, an Illinois resident and regular customer, has filed a lawsuit in federal court in Chicago against McDonald’s. He claims that the company colluded with its franchise owners to manipulate menu prices through an AI-driven pricing system, as outlined in the complaint reported by Reuters. This legal action comes shortly after news broke that McDonald’s was pressuring franchise owners to adopt AI for setting menu prices.
The lawsuit accuses McDonald’s of using a machine-learning pricing engine, which analyzes sales data from competing restaurants, to determine pricing for customers at individual franchises. The complaint details how this engine forecasts how much customers are willing to pay and assesses their sensitivity to prices, referencing nonpublic competitor data from other McDonald’s locations. It also notes that the algorithm connects price increases at one restaurant to whether other McDonald’s outlets have already elevated their prices for the same items.
Lark Turner, the attorney representing the plaintiff, expressed concerns, stating that McDonald’s is exploiting its extensive data and franchise model to squeeze profits from consumers on every detail, even down to the last French fry.
In response, McDonald’s has denied the allegations presented in the lawsuit.
McDonald’s is using artificial intelligence to help set menu prices across the US and some global markets, a plan that aims to boost profit but risks alienating customers and attracting antitrust scrutiny. READ: https://t.co/9TQ0r55A5q https://t.co/TfmZH4VZ8p
— Reuters Business (@ReutersBiz) September 29, 2026
The corporation issued a statement claiming that the complaint is flawed and that they will robustly counter the lawsuit. They clarified that AI does not determine menu prices—this responsibility lies with the franchisees. According to McDonald’s, while optional tools are provided to assist franchisees in decision-making, these do not coordinate or manipulate pricing.
The AI system in question is managed by Tiger Analytics, which analyzes McDonald’s sales data to suggest pricing strategies for its approximately 14,000 locations in the U.S., as reported by Reuters on September 29.
Evidence of price differences for items like the Big Mac, influenced by the AI system, was highlighted in a video shared by Reuters on September 29.
Additionally, on an earnings call, McDonald’s CEO Chris Kempczinski mentioned that the company occasionally increases prices in collaboration with franchise owners who do not adhere to the pricing recommendations provided by the AI.
