BP, Marathon, 7-Eleven, Walmart sued for allegedly using AI to boost California gas prices

A group of California drivers has filed a class-action lawsuit against prominent gas station operators, accusing them of artificially inflating prices through the use of artificial intelligence. The suit names major companies such as BP, Marathon Petroleum, 7-Eleven, Walmart, and Albertsons as defendants. Drivers allege that these companies employed an AI-based tool, reportedly from a company called Kalibrate, to coordinate pricing strategies across competing stations. This practice, the lawsuit claims, violates California's Cartwright Act, the state's primary antitrust law, and Assembly Bill 325, a recent law targeting algorithmic price fixing. The plaintiffs contend that this AI-driven coordination has led to significant price hikes, with gas costs rising as much as 30 cents per gallon in affected areas. They argue that this has pushed prices to "astronomical" levels, with some stations charging up to $7 a gallon, while families struggle with the cost of commuting. The lawsuit seeks unspecified damages for consumers who allegedly paid inflated prices due to this alleged scheme. Several of the named defendants either declined to comment or did not immediately respond to requests for a statement.

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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.