County Reaches Agreement With McDonald's Restaurants

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Contact: Sue Rogan, 240-777-3722

For Immediate Release: April 27, 2001

County Reaches Agreement with
McDonald’s Restaurants

The Montgomery County Department of Housing and Community Affairs announced today that as a result of an investigation by its Division of Consumer Affairs (DCA), 30 McDonald's restaurants in Montgomery County have agreed to make sure that accurate price information is posted at all restaurants and promptly correct any errors in posted prices.

Staff at DCA alleged that the McDonald's restaurant located at 465 North Frederick Avenue in Gaithersburg was charging $3.49 for a "No. 2 Meal" that had a posted menu price of $3.39. A Gaithersburg consumer who purchased the "No. 2 Meal" on May 10, 2000, complained to the manager about the price discrepancy, and was assured that the error would be corrected. When the consumer visited the same McDonald's restaurant a month later on June 10, 2000, he found that the pricing error had not been corrected. The price was finally corrected on June 12, 2000.

The consumer then filed a complaint with DCA, alleging that McDonald's had overcharged consumers and had not corrected the error in a timely manner after it was brought to the company’s attention. Under the Settlement Agreement that DCA negotiated with McDonald's Restaurants of Maryland, Inc., the company has agreed to monitor all posted prices to ensure that they are correct and to promptly correct any errors.

“I applaud the work of our Consumer Affairs staff in negotiating this agreement with McDonald’s,” said County Executive Douglas M. Duncan. "We do not tolerate fraudulent business practices here in Montgomery County, and we will make every effort to halt the unfair treatment of consumers."

McDonald's is requiring its store personnel to audit menu prices monthly, and to provide a signed statement to the Director of Operations saying that the store personnel have personally checked the menu board prices to make sure they accurately reflect the price being charged to consumers. In addition, McDonald's agreed to provide DCA with gift certificates for 100 free meals, which are being donated to the Gaithersburg Upcounty Senior Center.

"While the pricing discrepancy in this case is a small amount for an individual consumer, over time it can add up to a fairly large overcharge to the consuming public," said DCA Division Chief George Rose. "The overcharge to the public for this one item alone would amount to over several thousands of dollars per year if left uncorrected." Rose advised consumers to always check and make sure the prices being charged are correct, and to complain to management when there are pricing errors. If the problem is not corrected promptly, Rose advised consumers to call DCA at 240 777-3636.

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