McDonald's Price-Fixing Lawsuit: Alleged AI Pricing Scheme Since 2019

A newly filed lawsuit accuses McDonald's of orchestrating a price-fixing scheme through artificial intelligence. According to the complaint, McDonald's has since at least 2019 relied on a centralized, machine-learning "pricing engine", built in part on its 2019 acquisition of AI company Dynamic Yield, that draws on nonpublic sales data from millions of transactions each day across both corporate-owned and independently franchised locations. The tool allegedly generates price recommendations down to the specific restaurant and menu item.

The lawsuit argues this setup undermines competition because roughly 95 percent of U.S. McDonald's locations are independently owned franchisees who are supposed to set their own prices and compete with one another. Instead, the complaint claims McDonald's pooled franchisees' confidential sales data and applied pricing rules, including a "30% rule" that allegedly ties one restaurant's price hike to whether nearby competitors have already raised theirs, while pressuring franchisees to follow the tool's recommendations, reportedly using franchise renewals and expansion opportunities as leverage.

To back its claims, the complaint cites public reporting, including a September 29, 2026 Reuters article, as well as McDonald's own investor-day statements. It alleges that average menu prices climbed by roughly 40 percent between 2019 and 2024.

McDonald's, as characterized in the complaint, maintains that franchisees independently control their own menu prices. The filing cites McDonald's executives and public statements asserting that franchisees "set menu prices for their restaurants" and "retain control over independent pricing decisions." The plaintiff disputes this characterization, and the case remains a proposed class action with no settlement reached.