McDonald’s is facing a lawsuit in the US over an AI tool it has used for years to recommend its product prices. Apparently, the system analyzes and then calculates information about each establishment’s sales, its location and competitive prices How much should each menu item cost?.
However, an Illinois consumer believes that the technology could facilitate price coordination among restaurants that belong to the same chain but should compete independently. The lawsuit, filed Oct. 2 by Michael Thomas, alleges that McDonald’s uses business data that franchisees don’t typically share with each other, including sales results at each location.
According to Reuters, the whistleblower accused the company of taking advantage of that information Recommend prices that reduce competition And, at the same time, make the product more expensive. Thomas, who usually buys a cheeseburger, fries and a soft drink, began to question how the system worked when he noticed price differences between nearby restaurants.
McDonald’s assures that AI does not set prices in its restaurants
The company denied the allegations and assured that its tools only offer recommendations that franchisees can either accept or ignore. In a statement published on its website, McDonald’s insists that it does not use dynamic pricing and that AI does not automatically change what each customer pays.
In this situation, the company remembers About 95% of its 14,000 US restaurants are operated by franchisees.Or what is the same, responsible for establishing their own rates. The problem (according to the plaintiffs) is that McDonald’s will have enough influence over these establishments to pressure them to follow the system’s recommendations, and a previous investigation by Reuters already indicated that some franchisees felt that pressure. However, the company rejected this explanation.
Thus, the lawsuit requests that the method be able to represent other affected consumers and demand compensation, but there is still no judicial resolution that determines whether the tool really worked to adjust prices.
Picture | Andre Cordis (Unsplash)
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