California drivers sued a group of major gas-station operators and the pricing-software company Kalibrate on Monday, alleging that an artificial-intelligence tool is being used to fix gasoline prices across the state in violation of California’s antitrust law. The proposed class action, filed in federal court in Sacramento, targets BP, Circle K, Marathon, 7-Eleven, Walmart, Albertsons, and Kalibrate, accusing them of operating “an AI-powered trust” that eliminates competition at the pump.
According to the complaint, the defendants used Kalibrate’s software, which collects real-time pricing data from competing stations, to set prices above market levels. “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 lawsuit alleges that in areas where a high percentage of stations use the Kalibrate tool, prices have risen by as much as 30 cents per gallon. Each penny-per-gallon increase costs California drivers an estimated $134 million per year, the suit says, and prices have occasionally reached $7 per gallon — levels the complaint called “astronomical.”
The suit is the first major test of Assembly Bill 325, a California law that took effect Jan. 1 and makes algorithmic price-fixing a violation of the Cartwright Act. The law was designed to address the growing use of software that allows competitors to share pricing data through a common platform, a practice critics say amounts to a modern price-fixing trust.
The defendants operate more than 1,700 gas stations across California, the complaint said. Representatives for BP, Circle K, Marathon, 7-Eleven, Walmart, Albertsons, and Kalibrate either did not immediately respond to requests for comment or declined to comment.
California has the highest average gasoline prices in the nation. Regular unleaded averaged $5.58 per gallon statewide on Monday, according to AAA, compared with a national average of $3.93. The discrepancy has been a persistent political flashpoint; Gov. Gavin Newsom earlier this year urged residents to boycott Chevron over high prices. The lawsuit seeks unspecified damages for California drivers who paid inflated prices for gasoline.