Retailers Face Growing Scrutiny Over AI-Driven Dynamic Pricing

A Reuters investigation published last week examined McDonald's pricing system, using screenshots of the pricing engine taken in August and interviews with nine sources who have first-hand knowledge of the burger chain's strategy. The screenshots suggested that franchise owners receive suggestions on how to price items based in part on factors such as "customer willingness to pay in your area."

McDonald's responded in a statement on its website, refuting the report. "McDonald's pricing recommendation tool provides restaurant-specific recommendations. It does not set or change prices," the company said.

The scrutiny comes amid broader consumer concerns that retailers are increasingly using customer data to engage in dynamic pricing. The rise of digital shelf labels and the circulation of screenshots showing pricing algorithms have fueled worries, putting more companies on the defensive.

Retailers like Walmart are among those facing increased attention over their pricing practices, as consumer-facing companies make headlines for how they do or do not use data to set consumer prices.