TWO companies owned by a black US business mogul have sued McDonald’s alleging the fast food giant discriminates against black-owned media companies.

The suit was filed in Superior Court of California and seeks US$10 billion (RM41.4 billion) in damages.

It is part of a drive by the mogul, Byron Allen, to get major US corporations to spend more advertising money on black-owned media.

This suit was filed by two companies owned by Allen: Entertainment Studios Networks Inc and Weather Group LLC.

Allen Media Group/Entertainment Studios produces movies and owns more than a dozen television stations.

The suit argues that McDonald’s spent approximately US$1.6 billion on television ads in the United States in 2019 but only 0.31% of that went to black-owned media.

The two companies filing the suit did not say how they arrived at the US$1.6 billion figure.

“This is about economic inclusion of African American-owned businesses in the US economy,” Allen said in a statement.

“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 added.

McDonald’s intentionally discriminated against Entertainment Studios and Weather Group through a pattern of racial stereotyping and refusals to contract, the suit states.

A McDonald’s spokesman told the Wall Street Journal it would review the suit.

Earlier yesterday, McDonald’s announced it would more than double the advertising money it pays to media companies owned by blacks, Hispanics, women and other underrepresented groups over the next four years.

Spending with black-owned properties will increase from 2% to 5% of national advertising spend over this time period. – AFP, May 21, 2021.