Walmart, 7-Eleven, Albertsons, and BP used AI to raise gas prices, lawsuit alleges

Walmart, BP, and 7-Eleven are among the companies named in a class action lawsuit filed this week in federal court in California, alleging the use of artificial intelligence to artificially inflate gas prices. The lawsuit, filed on behalf of California drivers, claims that these companies, along with Albertsons, which collectively operate over 1,700 gas stations, have violated California's Cartwright Act antitrust law and Assembly Bill 325. The suit centers on Kalibrate's AI fuel pricing tool, which is accused of using pump data to coordinate high prices and increase profits from consumers. According to the federal suit, this AI tool has allegedly increased gas prices by as much as 30 cents per gallon, contributing to a total annual spike of $134 million. California's average price for regular gasoline was $5.56 per gallon on Tuesday, significantly higher than the national average of $3.92, according to AAA. A Walmart spokesperson stated the company is reviewing the complaint and will respond appropriately. The lawsuit alleges that these companies have conspired to eliminate competition through an "AI-powered trust" that ensures artificially high gasoline prices.