McDonald's Alleged Algorithmic Price-Fixing Class Action
Case Overview
An Illinois consumer initiated a class action lawsuit against McDonald’s USA LLC and McDonald’s Corporation. The core allegation is that the fast-food chain implemented a centralized algorithmic pricing system that exerted pressure on independent franchisees to adhere to the company's recommended pricing structures.
The complaint asserts that since at least 2019, McDonald's allegedly coordinated pricing across its corporate and franchised restaurants using a machine learning engine. This system reportedly collects nonpublic sales and pricing data from various restaurants to generate recommended menu prices, allowing price increases at one location to influence recommendations at competing ones. The lawsuit brings claims under the Sherman Act, the Illinois Antitrust Act, and the Illinois Consumer Fraud and Deceptive Business Practices Act.
The proposed nationwide class includes anyone who purchased items at McDonald's restaurants, with an Illinois subclass for residents making such purchases. The lawsuit seeks damages, including treble damages, restitution, and injunctive relief. The plaintiff is represented by Derek Y. Brandt and Larkin Turner of Clarkson Law Firm P.C.
Who May Qualify
Individuals who purchased menu items at McDonald’s restaurants.
Frequently Asked Questions
What is the basis of the price-fixing allegation?
The lawsuit alleges that McDonald's used a centralized machine learning pricing engine to collect sales and pricing data from its restaurants. This system then generated recommended menu prices, which allegedly pressured franchisees to follow the company's pricing suggestions.
What laws are cited in the lawsuit?
The complaint asserts claims under several laws, including the Sherman Act, the Illinois Antitrust Act, and the Illinois Consumer Fraud and Deceptive Business Practices Act.
Who represents the plaintiff in this case?
The plaintiff is represented by Derek Y. Brandt and Larkin Turner of Clarkson Law Firm P.C.