A proposed class-action lawsuit filed in California accuses several major fuel retailers and pricing software company Kalibrate of using artificial intelligence to coordinate gasoline prices and inflate costs for consumers. The lawsuit alleges that gas station operators, including companies such as BP, Marathon, Circle K, 7-Eleven, Walmart, and Albertsons, relied on AI-powered pricing software that analyzed competitors' pricing and sales data to recommend or automate fuel prices across thousands of stations.
According to the complaint, the software reduced normal market competition by encouraging stations to align pricing decisions rather than compete independently. Plaintiffs claim the system's "restoration" feature allowed participating stations to raise prices simultaneously, leading to average increases of around six cents per gallon and, in some heavily affected areas, as much as 30 cents per gallon. The lawsuit argues that these practices amount to a modern form of algorithmic price-fixing.
The legal action relies in part on California's Assembly Bill 325, which took effect in January 2026 and explicitly addresses the use of shared pricing algorithms in potential antitrust violations. The plaintiffs contend that the defendants violated both the state's Cartwright Act and the new law by using AI-driven tools to coordinate prices. The case is being closely watched because it may become one of the first major tests of California's efforts to regulate algorithmic pricing practices.
The defendants deny wrongdoing or have declined to comment, and the allegations have not yet been proven in court. Nevertheless, the lawsuit reflects growing concerns among regulators and consumer advocates that AI-powered pricing systems could enable companies to coordinate prices without direct communication. As AI becomes increasingly embedded in commercial decision-making, the outcome of this case could influence how courts and regulators address algorithmic pricing across multiple industries.
