McDonald's faces US lawsuit over AI pricing tool

McDonald's faces a federal antitrust lawsuit filed on Friday, October 2, 2026, in Illinois. The complaint alleges that the company's artificial intelligence pricing tool shares nonpublic store-level data among franchisees who compete in the same market, leading to algorithmic price-fixing and higher menu costs across thousands of restaurants.

The lawsuit was filed on behalf of consumer Michael Thomas of DeKalb, Illinois, who noticed price differences between nearby stores when ordering a Quarter Pounder with cheese, french fries and a Coke. The plaintiff asks the court to certify the case as a class action, order McDonald's to pay damages, and bar agreements that restrict competition.

McDonald's stated on Tuesday that the lawsuit is filled with inaccuracies and pledged to vigorously defend itself. The company noted that franchisees own and operate 95% of its 14,000 U.S. locations and retain full control over their pricing. It said optional software evaluates sales, location and competitor prices only to offer recommendations, a practice it maintained long before deploying its AI tool more than a decade ago.

While the lawsuit claims McDonald's holds significant leverage to pressure franchisees into following its price guidance, adoption is not uniform. In August, Chairman and CEO Chris Kempczinski told investors that only 60% of U.S. restaurants were offering the chain's recommended value menu of 10 items for under $3, noting that changes require ongoing discussions with operators.