California drivers sue gas stations for allegedly using AI to inflate prices
The Guardian • • business
Key Points:
- California drivers have filed a class action lawsuit against gas station operators including BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons, accusing them of using AI technology to artificially inflate gas prices.
- The lawsuit alleges the defendants violated California's Cartwright Act and Assembly Bill 325 by using an AI tool from Kalibrate to coordinate higher prices and reduce competition.
- The complaint claims gas prices have increased by as much as 30 cents per gallon in areas with high AI tool usage, costing California drivers an additional $134 million annually and pushing prices up to $7 per gallon.
- The defendants operate over 1,700 gas stations in California, where gas prices are the highest in the U.S., averaging $5.58 per gallon compared to the national average of $3.93.
- The lawsuit seeks unspecified damages for consumers who paid inflated prices, while the defendants have not yet commented on the allegations.
