BP, 7-Eleven, Walmart sued for allegedly using AI to boost California gas prices


Gas station operators, including BP, Circle K, Marathon Petroleum, 7-Eleven, Walmart, and Albertsons, were sued on Monday by California drivers who accused them of using artificial intelligence to boost prices at the pump.

Key takeaways:

According to a proposed class action, the defendants violated California's main antitrust law, the Cartwright Act, by using an AI-based tool that uses data from competing gas stations to "coordinate high prices and wring more money from the pockets of consumers."

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The lawsuit in the Sacramento, California federal court said the scheme violated Assembly Bill 325, a California law that took effect on January 1 and was intended to crack down on algorithmic price fixing.

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Drivers said gas prices have risen as much as 30 cents a gallon in areas where high percentages of stations use the AI tool, which comes from a company called Kalibrate.

Each penny costs California drivers an extra $134 million per year, boosting gasoline prices to "astronomical" levels sometimes reaching $7 a gallon, the complaint said.

"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.

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The defendants operate more than 1,700 gas stations in California, according to the complaint. Kalibrate is also 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.

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The lawsuit seeks unspecified damages for drivers who paid too much for gasoline.


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