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Lawsuit Accuses Gas Stations of Using AI to Jack Up Fuel Prices in California
The suit says 1,732 stations used Kalibrate Fuel Pricing to coordinate pump prices and avoid competition under a California law banning common pricing algorithms.
- On Monday, a lawsuit filed in Sacramento federal court accused major gas station owners, including Walmart and 7-Eleven, of using Kalibrate Fuel Systems' AI tool to artificially inflate prices across California.
- The complaint alleges violations of California's AB 325, a law signed in 2025 prohibiting pricing algorithms that "restrain trade or commerce" by allowing stations to avoid competing on price.
- Targeting 1,732 stations, the suit claims the algorithm inflated gasoline by 22 cents and diesel by 33 cents per gallon, with a "restoration" feature enabling contemporaneous price hikes.
- Every additional penny costs California drivers about $134 million annually, plaintiffs alleged, while Walmart stated it is "reviewing the complaint and will respond appropriately in court."
- California drivers currently face the nation's highest fuel rates, with some areas topping $7 a gallon, making the issue a political flashpoint for Governor Gavin Newson and the Trump administration.
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Californians sue over AI-based price fixing at gas pump
SACRAMENTO, Calif. (CN) — Three Californians filed a class action over what they call an artificial intelligence-based pricing system that has wrung more money out of drivers in a time of explosive gas prices. The plaintiffs sued Knowledge Support Systems, Inc., called Kalibrate, and a host of gasoline retailers. They claim part of the reason for the state’s “astronomical” gas prices is because of an illegal algorithmic price-fixing scheme opera…
·Pasadena, United States
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California drivers sue major gas companies for alleged AI-price fixing as prices at the pump soar
The lawsuit focuses on a Kalibrate software program that assists with gas pricing that the drivers say increases prices at the pump in violation of state antitrust statutes.
·New York, United States
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Coverage Details
Total News Sources36
Leaning Left5Leaning Right13Center6Last UpdatedBias Distribution54% Right
Bias Distribution
- 54% of the sources lean Right
54% Right
L 21%
C 25%
R 54%
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