Gas Stations Accused of Using AI to Inflate Prices
Gas station operators including BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons were sued on Monday by drivers who allege these companies used artificial intelligence to increase prices at the pump.
According to a proposed class action lawsuit filed in Sacramento federal court, the defendants violated California’s primary antitrust statute, the Cartwright Act, by employing an AI-based tool that utilizes data from competing gas stations to
“coordinate high prices and wring more money from the pockets of consumers.”
The lawsuit further claims that this scheme breached Assembly Bill 325, a California law effective from January 1, designed to combat algorithmic price fixing.
Impact on Gas Prices and Consumers
Drivers report that gas prices have increased by as much as 30 cents per gallon in regions where a significant number of stations use the AI tool, developed by a company named Kalibrate. The complaint states that each additional penny in price costs California drivers an extra $134 million annually, pushing gasoline prices to
“astronomical”levels, sometimes reaching $7 per gallon.
“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 asserts.
Defendants and Legal Proceedings
The defendants operate over 1,700 gas stations across California, according to the complaint. Kalibrate is also named as a defendant in the lawsuit. Requests for comment from the defendants were either not immediately answered or declined.
California residents currently pay the highest gas prices in the United States, averaging $5.58 per gallon for regular gasoline, according to AAA data. This contrasts with the national average of $3.93 per gallon. The lawsuit seeks unspecified damages on behalf of drivers who have paid inflated prices for gasoline.
