California lawsuit accuses gas stations of using AI to fix fuel prices
A federal class action lawsuit alleges gas stations used AI software to coordinate and inflate fuel prices in California.Summary
A federal class action lawsuit has been filed in the US District Court for the Eastern District of California against Kalibrate and 14 major gas station chains, including Marathon Petroleum, Circle K, BP, 7-Eleven, Walmart, and Albertsons. The plaintiffs allege that Kalibrate's AI-based pricing software was used to coordinate and inflate fuel prices, violating California's antitrust laws and Assembly Bill 325.
The lawsuit describes Kalibrate as a "central nervous system" for a conspiracy to eliminate price competition. It claims the software discourages lower pricing to avoid a "downward spiral" and includes tools that allow stations to raise prices simultaneously. The legal action estimates that these practices overcharge consumers by between 6 and 30 cents per gallon, which could cost California drivers hundreds of millions of dollars annually.
This legal challenge follows the signing of Assembly Bill 325 by Governor Gavin Newsom, which specifically targets the use of pricing algorithms to restrict trade. This case marks the first significant legal challenge against the use of fuel pricing algorithms in the United States.
(Source：The News International)