How I’d Fix It · Real case · 25 October 2026
McDonald’s is being sued over an AI tool that recommends menu prices. Here’s what the lawsuit claims, why I think the AI isn’t the real problem, and the four governance steps I’d put in place for any company using AI to set or suggest prices.
What the lawsuit claims
McDonald’s offers its U.S. franchisees a pricing tool that uses AI to recommend menu prices. The lawsuit claims the tool draws on confidential, store-level sales data from independently operated restaurants, data that competing franchisees would not normally share with each other.
The concern is whether those recommendations could reduce competition between restaurants that are supposed to set their prices independently. The lawsuit describes it as algorithmic price-fixing.
McDonald’s denies the allegations. The company says franchisees, not AI, set menu prices, and that its optional tools do not automate, coordinate or fix prices. None of the claims have been proven.
My take: the AI isn’t the real problem. It’s how the tool is used and governed: what data goes into it, who reviews it, and whether anyone checks what it recommends.
Here’s how I’d fix it
If I were advising any company that uses AI to set or suggest prices, these are the four things I’d look at first.
- Map every data source the AI uses. Know exactly what feeds the model: your own sales, location, costs, market data. If competitors’ confidential data is involved in any way, flag it for legal review before anything else.
- Get legal and antitrust review before the tool goes live. Algorithmic pricing is a growing area of antitrust concern. A review before launch costs far less than defending a lawsuit after it.
- Keep humans accountable, and be able to prove it. Saying “a human makes the final call” isn’t enough. Keep a record of who approved each price and why, so you can show it to a regulator, an auditor or a court.
- Audit the recommendations regularly. Look at what the tool actually recommends over time. If prices across competing locations start moving together, investigate why.
These are only a few of the controls I’d recommend. A full approach also covers vendor contracts, documentation, monitoring and clear ownership. My guide 8 steps to build an AI governance program shows where controls like these fit.
The bottom line: AI pricing isn’t the problem. Ungoverned AI pricing is.
This is the first episode of How I’d Fix It, where I take real AI failures and show how I’d govern them. Subscribe on YouTube for new episodes every week.
Based on public reporting by the Associated Press. The lawsuit’s claims are allegations and have not been proven; McDonald’s denies them. General education, not legal advice.