California Drivers Sue BP, Walmart, 7-Eleven Over Alleged AI Gas Price Fixing

California drivers have filed a proposed class-action lawsuit against several major fuel retailers, including BP, Circle K, Marathon Petroleum, 7-Eleven, Walmart, and Albertsons, accusing them of using artificial intelligence technology to inflate gasoline prices across the state.

The lawsuit, filed in federal court in Sacramento, alleges that the companies violated California’s Cartwright Act, the state’s primary antitrust law, by relying on an AI-powered pricing platform developed by Kalibrate. According to the complaint, the software collects and analyzes pricing data from competing gas stations, enabling operators to coordinate fuel prices and reduce competition.

Drivers claim the alleged pricing strategy also violates California Assembly Bill 325, a law that took effect on January 1 and aims to prevent algorithmic price fixing. The legislation was introduced to address concerns that advanced pricing technologies could facilitate anti-competitive behavior by allowing businesses to align prices through shared data and automated recommendations.

According to the lawsuit, gasoline prices in areas where a large number of stations use the Kalibrate platform have increased by as much as 30 cents per gallon. Plaintiffs argue that even a one-cent increase in fuel prices can cost California consumers an estimated $134 million annually, placing a significant financial burden on households and commuters.

The complaint further alleges that the defendants participated in an AI-driven network that effectively eliminated meaningful price competition. Plaintiffs contend that motorists have faced artificially inflated fuel costs while companies benefited from higher profit margins.

California continues to have the highest average gasoline prices in the United States. Data from AAA shows that regular gasoline in the state averages approximately $5.58 per gallon, compared with the national average of $3.93 per gallon.

The lawsuit seeks unspecified monetary damages on behalf of drivers who allegedly paid excessive fuel prices due to the use of AI-based pricing systems. Kalibrate has also been named as a defendant in the case. Most of the companies involved either declined to comment or did not immediately respond to requests for comment regarding the allegations.

The legal action highlights growing scrutiny of artificial intelligence tools in pricing decisions and could become a landmark case in the debate over AI-driven pricing practices and competition laws in the United States.