{"slug": "major-gas-stations-are-using-ai-to-keep-prices-inflated-lawsuit-says", "title": "Major gas stations are using AI to keep prices inflated, lawsuit says", "summary": "A federal lawsuit filed in California accuses major gas retailers including 7-Eleven, Circle K, BP, Marathon Petroleum, Walmart, and Albertsons of using AI software from Kalibrate to coordinate and inflate gas prices. The software automatically adjusts prices based on competitor data, allegedly violating state antitrust laws and causing price increases of up to 30 cents per gallon in some areas.", "body_md": "# Major gas stations are using AI to keep prices inflated, lawsuit says\n\nThe federal lawsuit claims major gas chains relied on an AI program that automatically pushed coordinated price adjustments directly to pumps and signs without human intervention\n\n- Bookmark\n- CommentsGo to comments\n\nA group of [California](/news/world/americas/us-politics/california-trump-offshore-wind-lawsuit-b3001941.html) residents has filed a federal lawsuit accusing several major fuel retailers of using [artificial intelligence software](/climate-change/ai-environmental-impact-chatgpt-claude-b3002234.html) to illegally coordinate and inflate [gas prices](/news/world/americas/us-politics/trump-gas-prices-truth-social-iran-b3002154.html) across the state.\n\nThe complaint, filed in the U.S. District Court for the Eastern District of California, Sacramento division, alleges that the companies used pricing software developed by the technology firm Kalibrate to fix fuel costs instead of competing independently, [ Reuters](https://www.reuters.com/business/bp-marathon-7-eleven-walmart-sued-allegedly-using-ai-boost-california-gas-prices-2026-06-22/) reported.\n\nAccording to the lawsuit, the software analyzes data from competing gas stations and automatically recommends price points to balance profit margins and sales volume. These adjusted prices are frequently pushed directly to pumps and store signs without human intervention.\n\nThe legal action targets 7-Eleven, Circle K, BP, Marathon Petroleum, Walmart, Albertsons and EG America, which now operates as Cumberland Farms. The lawsuit also names 10 additional unidentified gas retailers operating within California as defendants, according to [ C-Store Dive](https://www.cstoredive.com/news/7-eleven-circle-k-named-in-lawsuit-over-using-ai-to-boost-gas-prices/823558/).\n\nAlthough many of these retailers operate franchised locations, the plaintiffs claim the parent companies maintain pervasive direct and indirect control over store-level decisions.\n\nThe automated nature of the software means multiple direct competitors can use the same algorithm simultaneously, leading to coordinated pricing rather than open market competition.\n\nThe financial impact of the software varied by location. In areas where fuel retailers deployed the Kalibrate technology, the average price of gas increased by approximately six cents, according to the lawsuit. Also, as reported by *Reuters*, locations with a high concentration of stations using the software saw prices rise by as much as 30 cents.\n\nAccording to [AAA](http://go.redirectingat.com/?id=44681X1458326&xcust=b3002427&url=https%3A%2F%2Fgasprices.aaa.com%2F&sref=/news/world/americas/ai-gas-prices-california-lawsuit-b3002427.html), California has the highest national gas prices, with an average of $5.54 per gallon. For comparison, the national average is $3.93.\n\nThe plaintiffs allege that the retailers violated California’s primary antitrust law as well as Assembly Bill 325, a statute that explicitly prohibits businesses from using shared pricing algorithms to coordinate costs with competitors.\n\n“These acts represent a modern, digital iteration of traditional price-fixing and combination that California law expressly forbids,” the plaintiffs stated in the filing.\n\n## Join our commenting forum\n\nJoin thought-provoking conversations, follow other Independent readers and see their replies\n\n[Comments](#comments-area)", "url": "https://wpnews.pro/news/major-gas-stations-are-using-ai-to-keep-prices-inflated-lawsuit-says", "canonical_source": "https://www.independent.co.uk/news/world/americas/ai-gas-prices-california-lawsuit-b3002427.html", "published_at": "2026-06-24 20:13:05+00:00", "updated_at": "2026-06-24 20:24:39.932893+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-policy", "ai-ethics"], "entities": ["7-Eleven", "Circle K", "BP", "Marathon Petroleum", "Walmart", "Albertsons", "Kalibrate", "California"], "alternates": {"html": "https://wpnews.pro/news/major-gas-stations-are-using-ai-to-keep-prices-inflated-lawsuit-says", "markdown": "https://wpnews.pro/news/major-gas-stations-are-using-ai-to-keep-prices-inflated-lawsuit-says.md", "text": "https://wpnews.pro/news/major-gas-stations-are-using-ai-to-keep-prices-inflated-lawsuit-says.txt", "jsonld": "https://wpnews.pro/news/major-gas-stations-are-using-ai-to-keep-prices-inflated-lawsuit-says.jsonld"}}