California Drivers Sue 1,700 Gas Stations Over AI Price Collusion via Kalibrate
Updated
Updated · KFSN-TV · Jun 25
California Drivers Sue 1,700 Gas Stations Over AI Price Collusion via Kalibrate
3 articles · Updated · KFSN-TV · Jun 25
Summary
A proposed federal class action filed Monday says Marathon, Circle K, BP, Walmart and others used Kalibrate software to coordinate gasoline prices at more than 1,700 California stations.
Kalibrate allegedly collected stations' cost and volume data, discouraged undercutting rivals and used tools that helped nearby stations raise prices at the same time, according to the complaint.
Research cited in the lawsuit says algorithmic fuel-pricing software lifted prices by about 6 cents a gallon on average and by as much as 30 cents where adoption was widespread; the suit says 1 cent statewide costs drivers $134 million a year.
The case seeks to represent California drivers who bought gas at Kalibrate-linked stations since June 2022 and builds on a 2025 state law signed by Gov. Gavin Newsom clarifying that antitrust rules apply to pricing algorithms.
The lawsuit extends a broader U.S. crackdown on algorithmic pricing after DOJ actions against RealPage and Agri Stats, with California gas prices already among the nation's highest.
Is a price-fixing AI secretly behind California's high gas prices?
When algorithms control prices, is the free market officially dead?
California Sues 1,700 Gas Stations and Kalibrate for AI-Driven Price Fixing: Landmark Case Tests New Antitrust Law
Overview
A major class action lawsuit was recently filed in California federal court against over 1,700 gas stations and the UK-based company Kalibrate. The lawsuit claims these companies used AI-powered software developed by Kalibrate to unlawfully coordinate gas prices, replacing real competition with 'algorithmic coordination.' This system allegedly enabled stations to set higher, synchronized prices, forcing California drivers to pay artificially inflated amounts at the pump. The coordinated pricing strategies, driven by centralized data collection and AI recommendations, are said to have had a significant financial impact on consumers, eliminating genuine price competition across the state.