A proposed class-action lawsuit filed on Monday in Sacramento federal court accuses major gas station operators, including BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons, of using artificial intelligence to inflate gasoline prices in California. The complaint alleges that the defendants violated the state's Cartwright Act and Assembly Bill 325, a new law effective January 1 targeting algorithmic price fixing.
AI tool allegedly coordinates prices
The lawsuit claims the defendants used an AI-based tool from Kalibrate, which gathers data from competing stations to "coordinate high prices and wring more money from the pockets of consumers." According to the complaint, gas prices have risen by as much as 30 cents per gallon in areas where a high percentage of stations use the tool. Each penny increase costs California drivers an extra $134 million per year, pushing prices to "astronomical" levels that sometimes reach $7 per gallon.
Impact on California drivers
"While families struggle to afford the commute to work, defendants have conspired to put an end to competition, joining an AI-powered trust to ensure that no matter where a driver turns, the price for gasoline is artificially high," the complaint stated. The defendants operate more than 1,700 gas stations in California. Kalibrate is also named as a defendant. Most defendants either did not respond to requests for comment or declined to comment.
California's high gas prices
Californians already pay the highest gas prices in the nation, averaging $5.58 per gallon for regular, according to AAA. The national average is $3.93. The lawsuit seeks unspecified damages for drivers who overpaid for gasoline.
