California Drivers Sue Major Gas Stations Over AI Pricing Tool

California drivers filed a class-action lawsuit Monday against several major gas station operators, alleging they used an artificial intelligence tool to coordinate higher gasoline prices. The complaint, filed in a Sacramento-based federal court, names BP, Walmart, 7-Eleven, Marathon Petroleum, Circle K and other retailers as defendants.

It accuses them of deploying Kalibrate Fuel Pricing software that draws on competitor data to set elevated prices.

The suit claims the AI system violates Assembly Bill 325, a California statute aimed at preventing algorithmic price coordination. Plaintiffs argue the tool effectively creates an AI-powered trust that eliminates normal price competition. "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 states.

The filing seeks permanent injunctive relief for the plaintiffs and the class, along with any other relief the court deems appropriate.

California currently has the highest average gasoline price in the United States at $5.56 per gallon, compared with the national average of $3.93, according to AAA data cited in the suit. The complaint notes that each one-cent price increase across the state costs drivers roughly $134 million collectively.

The lawsuit also references an ongoing government investigation into Kalibrate's pricing practices that began in 2024.

A Walmart spokesperson told the Daily Caller News Foundation the company is reviewing the complaint and will respond appropriately to the court. BP declined to comment. 7-Eleven, Marathon Petroleum and Circle K did not immediately respond to requests for comment.