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'Price gouging': Macca's app users claim loyal customers are paying more

Author
Chris Marriner, NZ Herald,
Publish Date
Wed, 9 Aug 2023, 12:56pm
This combo differed in price by $3 on the same day in the same location. Photo / u/BattleScones
This combo differed in price by $3 on the same day in the same location. Photo / u/BattleScones

'Price gouging': Macca's app users claim loyal customers are paying more

Author
Chris Marriner, NZ Herald,
Publish Date
Wed, 9 Aug 2023, 12:56pm

Users of McDonald’s popular mobile app have raised fears that frequent customers are being hit with higher prices than others, a practice they claim is “price gouging”.

The claims were raised on Reddit, where one user highlighted that he was being charged up to $3 more than his partner for some items, despite them both accessing the app on the same day, from the same location.

The only difference between their accounts? He had more than double the number of loyalty points, showing he had used the app more in the past.

“I have sent a complaint a week ago and requested an Email back, obviously I’ve received nothing,” the disgruntled Maccas fan wrote.

“Please share this so that Kiwis can hold them to account for this, and to encourage people to make new accounts to circumvent their grimey, anticonsumer actions.”

The post received hundreds of replies, with many offering their own examples of items offered for sale at different prices.

While many appeared upset by the revelation that others were getting some items cheaper, some said that they accepted that this came with using the app.

“Personalised discounts are annoying but allowable,” one noted.

The Herald approached McDonalds’s NZ for comment on the claims and a spokesperson said the differences might be due to lower prices being used entice customers to return to the app.

Noting that personalised deals had been in place since the loyalty programme was rolled out last year, the spokesperson said details of how benefits were offered and data was used is spelled out in the terms and conditions.

“Individual offers will differ between users, based on a variety of factors,” they told the Herald.

“Due to the personalisation of our app, not all customers will see the same deals, and as an example a deal may be offered to encourage use of the app on the customer’s next visit,” they added.

But despite frequent users claiming they were being short-changed, Macca’s claimed that they would win out in the end.

“Our most loyal customers on the Macca’s app get the most significant benefits over time,” the spokesperson said.

“The loyalty programme continues to evolve and, as we do across the McDonald’s business, we listen to our customers and their feedback, and factor that into future planning.”

The Herald approached Consumer NZ about the claims of price gouging and the watchdog said it had not received any complaints about pricing on the app.

“The Fair Trading Act states businesses can’t mislead shoppers about prices, and the Privacy Act requires companies to disclose to consumers what data is being collected and how it’s being used,” a Consumer NZ spokesperson said.

“If McDonald’s is using personalised pricing, or their customers’ data to set different prices based on factors like what products they’ve searched for in the past, or their location – they should be upfront about it,” they added, pointing towards a Consumer guide to personalised pricing.

“While personalised pricing may not be inherently bad, it relies on businesses applying it fairly, responsibly, and transparently.”

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