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

The lawsuit was filed Friday in Illinois.

It claims the tool breaks antitrust laws by sharing private data with competing franchisees.

The lawsuit says the tool uses artificial intelligence to collect data.

This includes store-level sales that competing franchises would not normally share.

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

The suit calls the practice “algorithmic price-fixing.”

It says this targets customers who are already struggling with money.

McDonald’s said 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 do that instead.

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

The lawsuit was filed for Michael Thomas, a consumer from DeKalb, Illinois.

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

The company said it has long collected data and suggested prices to franchisees.

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

The lawsuit claims McDonald’s has strong power over franchisees.

It says the company can pressure them to follow its suggestions.

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