McDonald’s is facing a federal lawsuit over its AI-enhanced pricing tool.

The lawsuit was filed Friday in Illinois.

It claims the tool violates antitrust laws by sharing nonpublic data with competing franchisees.

The lawsuit says the tool uses artificial intelligence to collect data that competing franchises would not normally share, such as store-level sales.

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

The suit describes the practice as “algorithmic price-fixing” aimed at customers who are already stretched thin.

McDonald’s said Tuesday that the lawsuit is “filled with inaccuracies” and that it would vigorously defend itself.

The company said AI does not set menu prices at its restaurants and that franchisees do.

It said the optional tools do not automate, coordinate or fix pricing in any way.

The lawsuit was filed on behalf of Michael Thomas, a consumer from DeKalb, Illinois.

McDonald’s said it has used an AI-enhanced pricing tool for more than a decade.

The company said it has long collected data and recommended prices to franchisees, who own and operate 95% of its 14,000 U.S. stores.

The lawsuit claims McDonald’s has significant leverage over franchisees and can pressure them to follow its recommendations.

It asks the judge to certify the case as a class action and to award damages.