AI is helping gas stations collude to raise California fuel prices, lawsuit says
The proposed class action says Kalibrate software helped stations avoid price competition, with the lawsuit citing a 6-cent average increase per gallon.
- A class action lawsuit filed Monday accuses Marathon, Circle, Walmart, Albertsons, and Speedway of using Kalibrate to collude on California fuel prices, with defendants collectively operating more than 1,700 gas stations in the state.
- Democratic California Gov. Gavin Newsom signed a bill last year applying antitrust law to pricing algorithms, enabling this week's lawsuit against the fuel-pricing software company.
- According to the lawsuit, Kalibrate helps "coordinate high prices" and discourages competitive pricing to avoid a "downward spiral," while research shows algorithmic software raises fuel costs by about 6 cents per gallon, rising to 30 cents in concentrated markets.
- None of the defendants immediately responded to requests for comment Wednesday, while the lawsuit claims a single cent pump increase drains $134 million from Californians' wallets annually across the state.
- Antitrust litigation against companies like RealPage and Agri Stats continues as state attorneys general pursue cases against pricing software providers, though The DOJ settled previous lawsuits in the past year.
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Associated Press News
AI is helping gas stations collude to raise California fuel prices, lawsuit says
A federal lawsuit accuses gas station operators in California of using AI-powered software to illegally collude and raise prices.
Suit: Calif. gas stations used AI software to collude, raise gas prices
Gas station operators across California used an AI-powered software system to illegally coordinate pricing and drive up fuel costs, according to a federal lawsuit filed Monday. Driving the news: The proposed class-action suit accuses major gas station chains, including Marathon and Circle K, of violating California’s antitrust laws through their use of Kalibrate, a global fuel-pricing software system. Plaintiffs described Kalibrate as the “cent…
AI is helping gas stations collude to raise California fuel prices, lawsuit says - The Business Journal California Gas Stations Face Lawsuit Over Alleged AI Price-Fixing Scheme
AI-powered software has allowed gas station operators across California to illegally collude and drive up prices at the pump, according to a federal lawsuit. The proposed class action lawsuit, filed Monday, accuses gas station giants including Marathon and Circle K of violating California’s antitrust law through Kalibrate, a fuel-pricing software system used across the world. The plaintiffs describe Kalibrate as the “central nervous system for a…
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