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California drivers sue gas stations for allegedly using AI to fix prices

California drivers filed a proposed class-action lawsuit alleging that major gas station operators used an artificial intelligence pricing tool from Kalibrate to coordinate prices and inflate fuel costs by up to 30 cents per gallon, violating California's Cartwright Act and Assembly Bill 325.

22 June 2026 Β· BP Β· Governance, accountability and labour
22 June 2026
AII-1000-254115 sources ↓
Quick facts
Category
Governance, accountability and labour
Country
United States
Source
Bloomberg Business
Date
22 June 2026
Drafted by
Raidu Incident Detection

What happened

Gas station operators including BP, Marathon Petroleum, 7-Eleven, Walmart, Albertsons and Circle K were sued on June 22, 2026 by California drivers in federal court in Sacramento.

The complaint alleges the defendants used an artificial intelligence tool from Kalibrate that automatically adjusted prices based on shared confidential data from competing stations to coordinate high prices and reduce competition.

Reported impact

According to the complaint, gas prices rose as much as 30 cents a gallon in areas where high percentages of stations use the AI tool, with diesel rising as much as 33 cents per gallon.

Each additional penny per gallon costs California drivers approximately $134 million per year, the complaint said. Californians pay the nation's highest gas prices, averaging $5.58 per gallon, with some areas reaching above $7 per gallon.

Index analysis

The lawsuit alleged the defendants violated California's Cartwright Act and Assembly Bill 325, a California law that took effect January 1 and prohibits the use of shared pricing algorithms.

The case is among the first brought under AB 325. More than 60 bills targeting algorithmic pricing are pending across more than half of U.S. states. The Division of Petroleum Market Oversight issued subpoenas to some station owners over elevated prices in May 2026.

Governance controls

Assembly Bill 325 took effect on January 1, 2026 and was intended to crack down on algorithmic price fixing.

The Justice Department's antitrust division has focused on shared pricing platforms, noting that competitors routing pricing decisions through a common algorithm can constitute a hub-and-spoke conspiracy even without direct communication.

Classification

Category
Governance, accountability and labour
Industry
Energy, raw materials and utilities
Country
United States
Harm status
Actual harm
Intent
Unknown
Timing
Unknown
Harm types
Economic or property
Harmed
Consumers
Failure modes
Manipulation or dark pattern
Consequences
Litigation
AI systems
Kalibrate Fuel Systems pricing tool
Regulations
GDPR (cited), EU AI Act (cited)

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

Bloomberg Business
Gas Stations Accused of Using AI to Inflate Prices in California
22 June 2026
Forbes
Slew Of California Gas Stations Illegally Used AI To Raise Prices, Lawsuit Claims
22 June 2026
Yahoo! Finance
BP, Marathon, 7-Eleven, Walmart sued for allegedly using AI to boost California gas prices
22 June 2026
Global Banking & Finance Review
BP, Marathon, 7-Eleven, Walmart sued for allegedly using AI to bo
22 June 2026
PYMNTS.com
California Consumers Sue Gas Stations Over AI Price Fixing | PYMNTS.com
22 June 2026