Driver Sue Gas Stations
California drivers have filed a proposed class action lawsuit against several major gas station operators, alleging the companies used artificial intelligence-powered pricing software to coordinate fuel prices and drive up costs for consumers across the state.
The lawsuit was filed in federal court in Sacramento and names companies including BP, Marathon Petroleum, 7-Eleven, Walmart, Albertsons, Circle K, and fuel-pricing software provider Kalibrate. Plaintiffs claim the companies relied on a shared algorithmic pricing platform that weakened competition and resulted in motorists paying more at the pump.
Allegations Center On AI Pricing Software
According to the complaint, the defendants allegedly used Kalibrate’s fuel-pricing platform to collect market data and generate pricing recommendations based on competitors’ rates. Drivers argue that widespread adoption of the same software allowed retailers to align prices without directly communicating with one another.
The lawsuit alleges that the technology effectively replaced independent pricing decisions and enabled coordinated price increases across large portions of California’s fuel market. Plaintiffs contend this resulted in gasoline prices that were significantly higher than they would have been in a truly competitive environment.
Consumers Claim They Paid More At The Pump
Court filings allege the use of the software increased gasoline prices by as much as 30 cents per gallon in some markets. The plaintiffs argue that even small increases can have a substantial impact on consumers because of the enormous volume of fuel sold throughout California each year.
The lawsuit seeks damages on behalf of California drivers who allegedly paid inflated fuel prices due to the pricing practices described in the complaint.
New California Law Faces Early Test
The case is among the first major lawsuits filed under California’s Assembly Bill 325, which took effect on January 1, 2026. The law was designed to address concerns that companies could use algorithms and automated systems to coordinate prices in ways that undermine market competition.
Plaintiffs claim the alleged conduct violates both California’s Cartwright Act, the state’s primary antitrust law, and the newer legislation targeting algorithmic price-fixing practices.
More Than 1,700 Gas Stations Implicated
According to the lawsuit, the defendants collectively operate more than 1,700 gas stations across California. The complaint argues that widespread use of the same pricing technology created an environment where competing retailers no longer made fully independent pricing decisions.
The allegations come as California continues to experience some of the highest gasoline prices in the nation, placing additional financial pressure on drivers already facing elevated transportation costs.
Growing Scrutiny Of AI In Pricing Decisions
The lawsuit reflects increasing concern among regulators and lawmakers about the use of artificial intelligence and algorithmic systems to set prices. Similar questions have emerged in industries ranging from housing rentals to retail and transportation, where automated pricing tools are becoming more common.
Antitrust experts have warned that shared pricing algorithms could potentially allow competitors to coordinate market behavior without traditional forms of communication that regulators have historically monitored.
The defendants have either declined to comment publicly or had not responded to the allegations at the time of filing. The claims remain allegations, and no court has determined whether any laws were violated.
