California drivers sue gas stations for allegedly using AI to inflate prices
Summary
California drivers have filed a lawsuit against several gas station operators accusing them of using artificial intelligence (AI) to raise gasoline prices. The lawsuit claims the use of AI tools violated state laws designed to prevent price fixing and caused higher gas prices across the state.Key Facts
- Gas stations operated by BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons are named in the lawsuit.
- The drivers say these companies used AI software from a company called Kalibrate to set higher gas prices.
- The lawsuit alleges this use of AI violates California’s Cartwright Act and assembly bill 325, which targets algorithmic price fixing.
- Gas prices reportedly increased by as much as 30 cents per gallon in areas where many stations use this AI.
- Each additional penny in gas price costs California drivers about $134 million annually.
- Gas prices in California average $5.58 per gallon, compared to the national average of $3.93.
- The lawsuit was filed in federal court in Sacramento and seeks damages for drivers overcharged for gas.
- Defendants operate more than 1,700 gas stations in California; Kalibrate is also named as a defendant.
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