California Lawsuit Alleges 1,732 Gas Stations Used AI to Inflate Prices by 30 Cents
Updated
Updated · Forbes · Jun 22
California Lawsuit Alleges 1,732 Gas Stations Used AI to Inflate Prices by 30 Cents
3 articles · Updated · Forbes · Jun 22
Summary
A federal lawsuit filed in Sacramento accuses Kalibrate and major operators including Walmart, Speedway and Albertsons of using AI-driven fuel pricing to raise pump prices across California.
The complaint says stations shared cost and volume data with Kalibrate Fuel Pricing, which then recommended prices in ways that let operators avoid competing with nearby rivals.
Plaintiffs also cite a "restoration" feature that allegedly enabled broad, near-simultaneous price hikes, pushing prices up by as much as 30 cents a gallon in heavily covered markets.
The suit identifies 1,732 California stations tied to companies that allegedly used the system, including 1,000 ARCO sites, 400 Circle K locations and 150 Speedways.
California's average gasoline price stood at $5.52 a gallon on Monday, the highest in the U.S., and the case leans on AB 325, a 2025 law banning shared pricing algorithms that restrain trade.
Is AI creating secret cartels to hike gas prices without any human agreement?
Beyond gas, is AI using your data to set personalized prices for everything you buy?
California’s $6 Gas: How AB 325 Targets Algorithmic Price-Fixing and Reshapes Consumer Protections
Overview
California is facing persistently high gas prices, with averages near $6 per gallon and a mysterious surcharge that remains even after taxes. This has led to public concern and increased scrutiny of oil companies and their pricing practices. Critics doubt that suspending gas taxes would help consumers, fearing companies would keep the savings. In response to worries about price manipulation, California passed Assembly Bill 325, targeting algorithmic price-fixing and making it illegal for businesses to use shared pricing algorithms to coordinate prices. This new law aims to protect consumers and ensure fair competition in the fuel market.