California Drivers Sue Gas Station Operators Including BP and Walmart Over AI-Price Inflation Claims

A lawsuit was filed on Monday by California drivers against several major gas station operators, including BP PLC, Circle K, Marathon Petroleum, 7-Eleven, Wal-Mart, and Albertsons. The suit accuses the companies of using artificial intelligence technology to unlawfully inflate fuel prices.

The proposed class action alleges the defendants violated California's primary antitrust law, the Cartwright Act. It claims they employed an AI-based tool, using data from rival stations, to "coordinate high prices and extract more money from consumers' pockets."

Filed in federal court in Sacramento, California, the complaint states this mechanism violates the state's Assembly Bill 325. This law took effect on January 1st and is designed to combat algorithmic manipulation of fuel prices.

Drivers involved in the suit contend that in areas where this AI tool was widely used by gas stations, prices were inflated by as much as 30 cents per gallon. The tool in question is supplied by a company named Kalibrate.

According to the legal filing, each one-cent increase in the price of gasoline costs California drivers an extra $134 million annually. This practice, the suit alleges, has driven fuel costs to "astronomical" levels, sometimes reaching as high as $7 per gallon.

The complaint further argues, "While many families struggle with commuting costs, the defendants conspired to stifle competition by joining an AI-driven trust. This ensured gasoline prices remained artificially high for drivers no matter where they went."

The lawsuit notes that the named defendants collectively operate more than 1,700 gas stations across California. Kalibrate is also named as a defendant in the case.

Data from the American Automobile Association (AAA) shows California has the highest gasoline prices in the nation, with an average of $5.58 per gallon for regular unleaded. This compares to a national average price of $3.93 per gallon.

The legal action seeks unspecified monetary damages for drivers who suffered financial losses due to the alleged excessively high fuel prices.