California drivers sue gas stations for allegedly using AI to inflate prices
California motorists have filed a class-action lawsuit against major gas station operators, accusing them of using an artificial intelligence tool to coordinate and raise fuel prices in violation of state antitrust laws.
On Monday, California drivers filed a proposed class-action lawsuit in federal court in Sacramento against gas station operators including BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons, as well as the company Kalibrate. The lawsuit alleges that the defendants violated California's Cartwright Act and a new state law (Assembly Bill 325), which took effect on January 1 and targets algorithmic price fixing, by using an AI-based tool that gathers data from competing stations to "coordinate high prices and wring more money from the pockets of consumers."
According to the complaint, gas prices have risen by as much as 30 cents per gallon in areas where a high percentage of stations use the Kalibrate AI tool. Each penny increase costs California drivers an extra $134 million per year, with prices sometimes reaching "astronomical" levels of $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 said.
The defendants operate more than 1,700 gas stations in California, according to the lawsuit. Kalibrate is also named as a defendant. The defendants either did not immediately respond to requests for comment or declined to comment.
Californians pay the nation's highest gas prices, averaging $5.58 per gallon for regular, according to AAA. The national average is $3.93. The lawsuit seeks unspecified damages for drivers who paid too much for gasoline.
