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Monday, October 25, 2021

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McDonald’s sued by Byron Allen for racial discrimination

Byron Allen’s Allen Media Group (AMG) decided to file a $10 billion lawsuit against McDonald’s claiming racial discrimination. Deadline stated that Allen has accused the company of not providing media owned by Black adequate amount from their budgets for advertising budgets.



Byron Allen’s Allen Media Group (AMG) decided to file a $10 billion lawsuit against McDonald’s claiming racial discrimination

Deadline stated that Allen has accused the company of not providing media owned by Black adequate amount from their budgets for advertising budgets. This lawsuit was filed in the Superior Court of California in Los Angeles, and claims that the company is racial stereotyping, while breaching federal and state laws, with its decision to not contract with AMG’s Entertainment Studios and Weather Group. 

According to reports, African Americans make up 40% of the sales at the U.S. at McDonald’s. However, media owned by Black people enjoys less than $5 million, from the $1.6 billion that the company dedicates to annual television advertising. 

McDonald’s revealed that with its Owner/Operators, it increased its relationships with diverse-owned partners by two-fold adding that this includes their expenditure on diverse-owned media from 4% to 10% and with Black-owned media from 2% to 5% of overall country-wide advertising planned for the next four years. The company also added that it will respond to the complaint once it received it. 

Allen, along with several other Black media owners sent forth a letter the Ceo of McDonald’s, Chris Kempczinski and demanded that the company dedicate 5% to 15% of its advertising budget to Black-owned media. 

A year ago, it was reported that 52 prior franchisee owners also chose to file one lawsuit against McDonald’s claiming racial discrimination and accusing the company of systematically discriminating against the Black franchise owners as it allegedly offers greater financial support and better locations to their White counterparts. 

Moreover, they added that the time dedicated to them was also less than their white counterparts for the rebuilding of their restaurants, while also offering less financial support. The lawsuit stated that the number of Black franchise owners fell from about 400 in 1998 to less than 200 today. 

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