BP, 7-Eleven, and Walmart are among a slew of gas stations, convenience stores, and big box retailers sued this week for allegedly using artificial intelligence to spike gas prices in California.
U.S gas prices have recently hit a record high, up as much as 50% since the war with Iran began; and California has some of the nation’s highest fuel prices, with regular gasoline averaging $5.56 per gallon on Tuesday, compared to the national average of $3.92, according to AAA.
The class action lawsuit on behalf of California drivers alleges the businesses, which include Walmart and Albertsons and together operate over 1,700 gas stations, are violating California’s Cartwright Act antitrust law and Assembly Bill 325, which prohibits algorithmic price fixing.
The suit was filed in federal court in the Golden State’s capital on Monday, according to Bloomberg, which first reported the story.
At the center of this case is Kalibrate’s AI fuel pricing tool, which the businesses employ to set fuel prices, but which is accused of using data at the pumps to “coordinate high prices and wring more money from the pockets of consumers,” Reuters reported.
How much money? According to the federal suit, Kalibrate’s pricing increased gas prices by as much as 30 cents a gallon, to as much as $7 dollars a gallon, for a total spike of $134 million a year, per Reuters.
“While families struggle to afford the commute to work, defendants have conspired to put an end to competition, joining an AI-powered trust to ensure that no matter where a driver turns, the price for gasoline is artificially high,” according to the complaint, Reuters reported.
“We are reviewing the complaint and will respond appropriately to the Court,” a Walmart spokesperson said in an email statement.
Fast Company has reached out to Kalibrate, BP, Albertsons, and 7-Eleven for comment.