McDonald's Allegedly Used an AI Pricing Engine to Coordinate U.S. Menu Prices and Make Customers Overpay
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A U.S. consumer lawsuit alleged that fast-food chain McDonald's used an AI pricing engine trained on pooled confidential restaurant sales data to coordinate menu prices and make customers overpay. Franchisees allegedly faced pressure to follow its recommendations. McDonald's disputed the claims, saying franchisees independently set prices and the tool only provides recommendations.
What this means for youIf the allegations hold, customers may have paid more for fast food than prices set independently would have been. Regulators and courts are the ones who would decide whether shared AI pricing tools that coordinate prices break competition law.
Source: AI Incident Database
Data from the AI Incident Database (incidentdatabase.ai), licensed CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/). McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. IAAI-21.