McDonald’s defends its dynamic AI pricing — as new lawsuit says it’s ‘nickel-and-diming consumers down to the last French fry’
- McDonald’s is being sued over its use of dynamic AI pricing
- The lawsuit alleges it colluded with franchises to set prices
- McDonald’s denies the allegations made in the antitrust case
How would you feel if you got charged more for your McDonald’s meal simply because some opaque AI algorithm decided you should? You’d probably be pretty unhappy, and the practice is now in the spotlight as the fast-food chain is being hit with an antitrust lawsuit over its usage.
The proposed class-action suit alleges that McDonald’s has coordinated pricing between the chain itself and its independent restaurants that operate as part of its franchise system. It claims that, instead of competing among themselves on affordability, McDonald’s franchises are colluding to set prices recommended by AI algorithms, potentially inflating the costs charged to consumers as a result.
According to Reuters, McDonald’s uses its AI algorithm to set prices at roughly...
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