California drivers sue gas stations over alleged AI-driven price inflation

Gas station operators, including prominent brands like BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons, are facing a lawsuit from California drivers who allege the use of artificial intelligence to artificially inflate gasoline prices. The proposed class-action lawsuit, filed in Sacramento federal court, accuses the defendants of violating California's Cartwright Act, the state's primary antitrust law.

Drivers contend that the defendants employed an AI-based tool, developed by a company named Kalibrate, which allegedly uses data from competing gas stations to "coordinate high prices and wring more money from the pockets of consumers." This practice is also said to violate Assembly Bill 325, a California law enacted on January 1, intended to combat algorithmic price fixing.

The complaint asserts that gas prices have surged by as much as 30 cents per gallon in areas where a significant percentage of stations utilize the Kalibrate AI tool. The lawsuit estimates that each penny increase costs California drivers an additional $134 million annually, pushing gasoline prices to "astronomical" levels, sometimes reaching $7 per gallon.

“

Gas station operators including BP, Circle K, Marathon, 7-Eleven, Walmart and Albertsons were sued on Monday by California drivers who accused them of using artificial intelligence to boost prices at the pump.

"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 states. The defendants collectively operate over 1,700 gas stations in California. Kalibrate is also named as a defendant. Several of the named companies either declined to comment or did not immediately respond to requests for statements.

Californians currently face the nation's highest gas prices, with regular gasoline averaging $5.58 per gallon, according to AAA. This contrasts with the national average of $3.93 per gallon. The lawsuit seeks unspecified damages on behalf of drivers who allegedly overpaid for fuel.

“

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.