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Walmart and McDonald's Deny AI-Driven Personalized Pricing as Shopper Suspicion Grows

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17

Why it matters

Shoppers increasingly suspect retailers and restaurants are using AI and personal data to charge more based on individual habits or urgent need. Walmart, Kroger and McDonald's deny doing so. Walmart CEO John Furner said in a September 25 customer letter that the company prices products, not people, and that income, shopping history and moment of need would never set a price. Walmart also rejected claims that its electronic shelf labels enable real-time or personalized pricing; Dan Bartlett, its head of corporate affairs, argued that shelf labels do not by themselves mean dynamic pricing. McDonald's is the sharpest point of contention. According to a Reuters report, the company has pushed franchise operators to use an AI-powered algorithm that analyzes data across its 14,000 restaurants to estimate "customer willingness to pay in your area." McDonald's says the tool does not set prices in real time and only suggests prices, which franchisees decide for themselves. A proposed class action filed in federal court in Chicago in early October goes further, alleging the platform lets McDonald's and its franchisees coordinate menu prices. McDonald's maintains franchisees set their own prices.

Several points remain unresolved. The allegations in the Chicago class action have not been tested in court, and McDonald's denies them. Walmart has not disclosed how its shelf label systems are configured or whether any pricing data feeds into them. Critics, including Lindsay Owens of Groundwork Collaborative, author of Gouged, dispute the companies' explanations, but no regulator has yet made a finding against any of them.

Legislation is moving on several fronts. In February 2026, U.S. senators introduced the Stop Price Gouging in Grocery Stores Act. In the House, Reps. Greg Casar and Rashida Tlaib introduced a bill to bar surveillance data from being used to raise prices, which the UFCW has endorsed. New York already requires stores to disclose AI-based pricing, and Pennsylvania, Maryland and Washington are considering outright bans, according to King & Spalding. Counsel advising retailers or restaurants should track the class action's early motions, any state disclosure filings, and how companies document the line between algorithmic suggestions and final pricing decisions. Public denials alone are unlikely to settle the question, so the verifiability of those statements is what to watch.

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