McDonald’s is facing a lawsuit from the government.

The lawsuit is about its AI pricing tool.

It was filed on Friday in Illinois.

It claims the tool breaks antitrust laws.

It says the tool shares private data with competing franchisees.

The lawsuit says the tool uses AI to collect data.

Competing franchises would not normally share this data.

One example is store-level sales.

It also blames the system for raising McDonald’s prices in the U.S.

The suit calls this “algorithmic price-fixing.”

It says this targets customers who are already struggling.

McDonald’s said on Tuesday that the lawsuit is “filled with inaccuracies.”

It said it would fight the case strongly.

The company said AI does not set menu prices at its restaurants.

It said franchisees set the prices.

It said the tools are optional.

They do not automate, coordinate or fix pricing in any way.

The lawsuit was filed for Michael Thomas.

He is a customer from DeKalb, Illinois.

McDonald’s said it has used an AI pricing tool for more than ten years.

The company said it has collected data for a long time.

It has also suggested prices to franchisees.

Franchisees own and run 95% of its 14,000 U.S. stores.

The lawsuit claims McDonald’s has a lot of power over franchisees.

It can pressure them to follow its suggestions.

It asks the judge to make the case a class action.

It also asks for money for damages.