McDonald’s Inc sued for US$10bn as US entrepreneur says it discriminates against
The lawsuit was brought forward by Entertainment Studios Networks owner Byron Allen
McDonald’s Inc () has been sued for US$10bn by US media entrepreneur Byron Allen.
The owner of Entertainment Studios Networks said the fast-food chain is discriminating against Black-owned media outlets by not advertising with them as much as it should.
The complaint said McDonald’s violated the law with its “racial animus and racial stereotyping” in setting budgets, Reuters reported.
The burger giant refused to advertise with Allen’s channels, according to the lawsuit, filed in Los Angeles on Thursday.
“McDonald’s, like much of corporate America these days, publicly touts its commitment to diversity and inclusion, but this is nothing more than empty rhetoric,” the complaint was reported as saying.
Also on Thursday, McDonald’s has vowed to increase its advertising spend in diverse-owned partners (including Black, Hispanic, Asian Pacific American, Women and LGBTQ-owned platforms) from 4% to 10% by 2024.
Spend with Black-owned properties will increase from 2% to 5% of US advertising spend over the next three years.
“We’ve been making serious commitments that are guided by our values, and with this latest move, we’re taking action to advance diverse-owned companies across the marketing supply chain,” said Morgan Flatley, Chief Marketing and Digital Customer Experience Officer, McDonald’s US.
Shares were flat at US$232.60 in afterhours trading.
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