McDonald’s has found itself in the middle of a USD 10 billion lawsuit over racial discrimination. The fast-food giant has been hit with the lawsuit by two companies of Media Mogul Byron Allen. The companies accused McDonald’s of being involved in racial discrimination in its ad spending. Weather Group LLC and Entertainment Studios Networks Inc. have filed the lawsuit in Los Angeles County Superior Court. Both the companies are owned by Allen, who is Black. While Weather Group LLC owns The Weather Channel and Entertainment Studios Networks controls almost a dozen of television networks. The complaint alleged that McDonald’s violated federal and state law. It said that the fast-food giant intentionally discriminated against the company owned by Byron Allen.
The lawsuit said that McDonald’s refused to advertise on the platforms of both the companies ever since they were acquired by Allen in 2018. “This is when McDonald’s bought significant advertising on channels that are at the similar position but are owned by white people.” The lawsuit claimed that African Americans contribute to around 40 per cent of its sales. “Despite this, the company spends less than USD 5 million on television ad budget on Black-owned media.” Allen said that it is about the ‘inclusion of African American owned business in the economy of the United States.’
“McDonald’s taking billions from the African American consumers but giving almost nothing back. The fast-food is guilty of perpetuating disparity between White corporate American and Black America,” Allen said in a statement. The lawsuit was filed on the day the company announced that it would increase its national ad spending from 2 per cent to 5 per cent for Black-owned media by 2024. The company said that the ad spending will also be increased on Asian American, Hispanic, and LGBTQ-owned platforms. McDonald’s has not reacted to the lawsuit filed by the companies owned by Allen. The fast-food giant said that it will review the lawsuit and will then react accordingly.
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