McDonald’s Faces a Federal Class Action
McDonald’s is facing a proposed class action in federal court in Chicago over claims that an artificial intelligence pricing system helps coordinate menu prices across its restaurants. Michael Thomas of DeKalb, Illinois, filed the lawsuit on Oct. 2 against McDonald’s Corp. and McDonald’s USA. He wants to represent customers who purchased food from the chain. The complaint says Thomas regularly bought the same items at different McDonald’s restaurants and paid different prices. The case seeks relief under Section 1 of the Sherman Act, the Illinois Antitrust Act, and the Illinois Consumer Fraud and Deceptive Business Practices Act. Thomas is seeking treble damages, an injunction, and attorneys’ fees.
What the Complaint Says the Pricing Engine Does
The complaint says about 95 percent of roughly 14,000 U.S. McDonald’s restaurants are owned by independent franchisees, who are supposed to set their own prices and compete with one another. It alleges that since at least 2019, McDonald’s has used a machine-learning “pricing engine” that reviews sales data from millions of daily transactions, including confidential franchisee figures, and recommends prices for each location. According to the filing, the system estimates what customers may pay, uses non-public data from other McDonald’s restaurants to measure price sensitivity, and connects one store’s increases to whether other stores raised the same item. The lawsuit also claims McDonald’s pressured franchisees to use the system and required an approved pricing consultant and tools beginning in January 2026. Stores that stray from the recommendations are allegedly tracked, while “pricing non-compliance” could affect renewal or consideration for additional restaurants.
The Complaint’s “An $18 Burger” Heading
One section of the complaint is titled “An $18 Burger.” The filing argues that McDonald’s benefits whether prices rise at company-owned restaurants or at franchised locations, where the corporation collects royalties. It cites a May 29, 2024, company fact sheet that said average menu prices increased about 40 percent from 2019 through 2024. The complaint also points to McDonald’s 2022 and 2023 annual reports, which credited “strategic menu price increases” for revenue gains. Reuters reported that the filing cited a Sept. 29 Reuters story about McDonald’s pricing engine and other chains using artificial intelligence for pricing and operations. Similar class action lawsuits have also been filed in recent years over hotel rooms and apartment rents.
McDonald’s Rejects the Accusations
McDonald’s called the lawsuit’s claims speculative and uninformed. The company said, “AI does not set the price of a Big Mac or any other menu item,” and insisted that franchisees set their own prices. McDonald’s also said recommendation tools are common across many industries. Lark Turner, a lawyer for Thomas, said McDonald’s was “leveraging its troves of data and its franchised system to nickel-and-dime consumers down to the last French fry.” For now, the competing claims leave a basic question at the center of the case: whether McDonald’s pricing recommendations are simply business advice or something more coordinated.
McDonald's hit with lawsuit alleging AI-powered menu price-fixing https://t.co/bTA38Sf7VU pic.twitter.com/fO1Zk4Zh0v
— New York Post (@nypost) October 5, 2026
