McDonald’s, Deloitte Under Fire Over Alleged Menu Pricing Scheme

McDonald’s Corp. and Deloitte Consulting are facing a proposed class-action lawsuit alleging that a technology-driven pricing system allowed the fast-food giant to coordinate menu prices across independently operated restaurants, potentially undermining competition and raising costs for consumers.

The lawsuit, filed in federal court in Illinois on Oct. 15, alleges that McDonald’s relied on confidential transaction information collected from competing franchise locations and company-operated restaurants to generate pricing recommendations, according to an Oct. 16 report by Law360. The complaint also identifies Deloitte as an alleged participant in the pricing arrangement, expanding the legal scrutiny surrounding McDonald’s use of data analytics and artificial intelligence in its U.S. restaurant operations. According to Law360, the plaintiffs contend that McDonald’s pricing system drew on commercially sensitive information that independently operated restaurants would not ordinarily share with competitors. The lawsuit argues that combining those data through a centralized platform could reduce independent decision-making and facilitate coordinated pricing. The allegations raise questions about the use of sophisticated pricing technology in franchise businesses, where individual operators generally retain authority over the prices charged to customers.

Source: McDonald’s, Deloitte Under Fire Over Alleged Menu Pricing Scheme