Several major US fuel retailers have been sued by California drivers. According to a report by the news agency Reuters, the lawsuit alleges that the gas station operators used artificial intelligence (AI) to coordinate gasoline prices and raise prices at the pump. The lawsuit, filed in federal court in Sacramento, California, has been brought against gas station operators, including BP, Marathon Petroleum, Circle K, 7-Eleven, Walmart and Albertsons.The proposed class-action lawsuit claims the companies violated the state’s Cartwright Act by using an AI-powered pricing tool developed by Kalibrate. According to the complaint, the software uses pricing data from competing gas stations to help coordinate fuel prices, reducing competition and leading to higher prices for consumers. The lawsuit also names Kalibrate as a defendant and alleges that the pricing practices violate California’s Assembly Bill 325, a law that came into effect on January 1 and was aimed at addressing algorithmic price-fixing.“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 said, as seen by Reuters.
What the lawsuit alleges about gas station operating companies in US
According to the complaint, fuel prices have increased by up to 30 cents per gallon in regions where a significant share of gas stations use Kalibrate’s AI pricing tool. The lawsuit estimates that every one-cent increase in gasoline prices costs California drivers an additional $134 million annually.The plaintiffs claim that the alleged pricing coordination has contributed to higher fuel costs in California, which currently has the highest average gasoline prices in the United States. According to AAA data cited in the lawsuit, regular gasoline in California averages $5.58 per gallon, compared to the national average of $3.93 per gallon.The defendants collectively operate more than 1,700 gas stations across California, according to the complaint. The lawsuit seeks unspecified damages for drivers who allegedly paid higher gasoline prices due to the use of the AI-based pricing system. The companies named in the lawsuit either declined to comment or did not immediately respond to requests for comment, Reuters reported.
