A lawsuit filed Monday in federal court in Sacramento accuses some of the nation's largest fuel retailers of using artificial intelligence to artificially inflate pump prices across California, violating state antitrust law.
The class action suit targets BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons, along with Kalibrate, the company behind the AI pricing tool. Drivers claim the defendants used the technology to coordinate prices and eliminate competition, resulting in significantly higher costs at the pump.
The complaint centers on a pricing algorithm that analyzes data from competing gas stations to set prices. According to the lawsuit, this coordinated approach has driven prices up as much as 30 cents per gallon in areas with high concentrations of the AI system. The plaintiffs estimate each penny of inflation costs California drivers an extra $134 million annually.
The litigation specifically cites violations of California's Cartwright Act, the state's primary antitrust statute, and Assembly Bill 325, which took effect January 1 and was designed to crack down on algorithmic price fixing. The lawsuit describes the defendants' network as an "AI-powered trust" ensuring artificially elevated prices regardless of which station consumers visit.
The operators being sued control more than 1,700 gas stations throughout California. Gas prices in the state have reached as high as $7 per gallon in some locations. The complaint argues that while families struggle with transportation costs, the defendants conspired to eliminate genuine price competition.
California continues to grapple with the nation's highest fuel prices. The state average for regular gasoline sits at $5.58 per gallon, compared to a national average of $3.93, according to AAA data. The lawsuit seeks unspecified damages for drivers who overpaid as a result of the alleged scheme.
Most of the named defendants did not respond to requests for comment or declined to discuss the allegations.
Author James Rodriguez: "If these accusations stick, California regulators may finally have the ammunition they need to push back against algorithmic pricing that punches ordinary drivers in the wallet."
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