California, US: Major fuel retailers and gas station operators including BP, Marathon Petroleum, 7-Eleven, Walmart, Circle K and Albertsons have been sued in California over allegations that they used artificial intelligence-based pricing tools to increase gasoline prices for consumers.
According to a proposed class-action lawsuit filed in federal court in Sacramento, the companies allegedly used an AI-powered pricing platform developed by Kalibrate to coordinate gasoline pricing using competitor station data.
The complaint alleges that the practice violated California’s Cartwright Act, the state’s primary antitrust law, as well as Assembly Bill 325, a California law that came into effect on January 1, 2026, targeting algorithmic price-fixing practices.
The lawsuit claims gasoline prices increased by as much as 30 cents per gallon in areas where the AI pricing system was widely adopted. Plaintiffs argued that the alleged pricing coordination contributed to significantly higher fuel costs for California consumers, where average gasoline prices remain the highest in the United States.
According to the complaint, the defendants collectively operate more than 1,700 gas stations across California. The lawsuit seeks unspecified damages for consumers who allegedly paid inflated fuel prices.
Reuters reported that several of the companies either declined to comment or did not immediately respond to requests for comment regarding the allegations.
The case adds to growing regulatory and legal scrutiny surrounding the use of artificial intelligence and algorithmic systems in pricing decisions across industries including retail, hospitality, transportation, and energy markets.
Kalibrate provides fuel pricing, retail analytics, and location intelligence software used by fuel retailers and convenience store operators to optimize pricing and operational decisions across fuel networks.
