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Wednesday, September 28, 2022

McDonald's to face $10B lawsuit alleging bias against black media companies

by Misty Severi September 23, 2022

A $10 billion lawsuit against McDonald's will be allowed to proceed after a federal court denied the company's motion to dismiss and sided with media tycoon Byron Allen, who is alleging that the corporation allocates less ad funding to black-owned media.

Allen will be allowed to try and prove the franchise discriminates against black-owned media, thus violating federal civil rights laws, a federal district court in California ruled last week.

"This is about economic inclusion of African American-owned businesses in the US economy," Allen said in a press release Tuesday. "McDonald's takes billions from African American consumers and gives almost nothing back. The biggest trade deficit in America is the trade deficit between white corporate America and black America, and McDonald's is guilty of perpetuating this disparity."

Allen alleges that the company placed his networks, which include the Weather Channel and, to an "African American tier" that receives less funding. The lawsuit claimed black people represent 40% of fast-food customers, but McDonald’s spent 0.3% of its $1.6 billion U.S. ad budget in 2019 on black-owned media, according to the press release...........To Read More...

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