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McDonald’s CEO questioned over AI pricing tools by Elizabeth Warren, Democrats
Senator Elizabeth Warren and four Democratic representatives have questioned McDonald’s chief executive Chris Kempczinski about the company’s use of algorithmic pricing tools. They say the tools could push prices higher for consumers or help franchisees coordinate prices, and have asked for details about their operation and oversight.
The letter, dated 2 November, asks whether the recommendations use individual loyalty-program data, how franchisees are encouraged to follow them and what antitrust review took place. The lawmakers requested a reply by 16 November. McDonald’s says its recommendations are not based on individual customers, are not mandatory and leave franchisees free to set prices; two recent US lawsuits allege the system illegally coordinates prices.
In short
- Elizabeth Warren and four lawmakers seek answers about McDonald’s pricing algorithms.
- They raised concerns about higher prices and possible coordination between franchisees.
- McDonald’s says franchisees set their own prices and tools are advisory.
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