The United States Federal Trade Commission is reportedly investigating broken McDonald’s McFlurry machines.
According to the Wall Street Journal, the FTC has contacted multiple franchisees looking for more information on its historically troubled machines used to make McDonald’s milkshakes, soft cones and the McFlurry.
The FTC declined to comment on the investigation, the Wall Street Journal reported.
McDonald's ice cream machines fail so often the reaction has gone beyond late-night talk-show jokes to a lawsuit. The Federal Trade Commission has questions, too. https://t.co/MNQZfBvvDo
— The Wall Street Journal (@WSJ) September 2, 2021
The machines have a history of repeated breakdowns and a franchisee told the Journal that repair times for the machines have increased during the COVID-19 pandemic.
The primary manufacturer, Taylor Commercial Foodservice LLC, said that it is the lack of franchise owners’ knowledge on equipment that is causing delays.
“A lot of what’s been broadcasted can be attributed to the lack of knowledge about the equipment and how they operate in the restaurants,” a Taylor representative told The Wall Street Journal.
Other franchise owners claim that the machines are complex and hard to fix and they are often forced to contact an authorized repair company.
Kytch Inc. has designed equipment to mount on the machines to alert franchise owners on the status of the ice cream machines so they can prevent further damage during a breakdown.
The McDonald’s Corporation later told franchise owners that the third-party devices posed a safety hazard and it would instead develop a similar device.
In response, Kytch Inc. filed a lawsuit accusing McDonald’s primary manufacturer of the machine that it is trying to replicate its device.
“This is a case about corporate espionage and the extreme steps one manufacturer has taken to conceal and protect a multimillion-dollar repair racket,” attorneys for Kytch wrote in the complaint in California Superior Court in Alameda County obtained by the Wall Street Journal.
Taylor denied that it is trying to steal the technology from Kytch.
“This is a case of a hacker—Kytch—incredibly accusing the hacked—Taylor—of theft,” Taylor said in a court filing.
According to the Associated Press, the controversy follows recent legislation from the Biden Administration addressing businesses’ ability to fix their own equipment.
In July, President Joe Biden signed an executive order targeting what he labeled anti-competitive practices by big businesses. The order included provisions that addressed unlawful manufacturer repair restrictions that make products harder to fix and maintain.
The Associated Press contributed to this story.
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