McDonald's AI pricing tool sparks lawsuit, industry debates whether to introduce dynamic pricing

A recent federal antitrust lawsuit against McDonald’s alleges that the company uses an AI-driven “pricing engine” to help set menu prices at its U.S. stores, potentially causing consumers to pay higher prices for products such as Big Macs and French fries. According to reports, McDonald's has about 14,000 stores in the U.S. market, about 95% of which are independently operated by franchisees. The plaintiff believes that the company’s use of AI pricing tools to influence franchisees’ price decisions may weaken price competition among stores. However, McDonald's denied the allegations. The company stated that AI is mainly used to provide data analysis, price suggestions and business references, and will not directly determine menu product prices. AI application extends to retail price management In addition to the catering industry, the US supermarket chain Kroger also said that it is using the AI ​​platform FlashFood to identify products that are close to their shelf life and provide discount information to consumers through the App. At the same time, Electronic Shelf Labels (ESLs) are being used in more retail scenarios. According to reports, supermarkets including Kroger, Amazon Fresh, and Walmart are adopting electronic price tags, and the technology is also being promoted in retailers such as Tesco, Morrisons, and Asda in the United Kingdom. But experts warn this could lead to wider adoption of dynamic pricing, dramatically impacting the shopper experience. The boundaries between dynamic pricing and personalized pricing are gradually blurring. Dynamic pricing refers to an enterprise's timely adjustment of the price of goods or services based on market factors such as demand, time, production capacity, and competitor prices. The development of AI technology is expanding the ability of enterprises to obtain and analyze consumer information, including transaction history, browsing behavior, geographical location, purchasing patterns and other data. Miroslava Marinova, a senior lecturer in commercial law at the University of East London in the UK, said that dynamic pricing mainly changes according to market conditions.