Walmart faces lawsuit over gas price scheme

A class action lawsuit has been filed against major fuel retailers, including 7-Eleven, Speedway, Circle K, bp, Marathon Petroleum Corp., Walmart, and Albertsons, claiming they’ve been using AI-powered collusion to artificially inflate gas prices in California.

The lawsuit, filed by three California residents, alleges that the gas station chains have replaced competitive pricing with algorithmic software, resulting in Californians being forced to pay surcharges that cannot be explained by crude oil costs, refining costs, environmental regulation, or taxes.

They used an AI tool from Kalibrate, a subsidiary of Kalibrate Technologies Limited, which conducts business in the United States on behalf of its parent company.

The complaint alleges that the gas station operators violated the Cartwright Act, California’s antitrust law, by using Kalibrate’s fuel pricing software, which connects directly to gas stations’ pumps and signs, to coordinate high prices and increase profits.

It claims that the gas station defendants have replaced independent, competitive pricing with a coordinated, automated mechanism that relies on sensitive competitor data and a conscious decision to ensure that prices remain artificially high.

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The lawsuit is seeking unspecified damages for California drivers who were allegedly overcharged at the pump.

The lawsuit cites California’s Assembly Bill 325, which was signed into law by Gov. Gavin Newsom on October 6, 2025, and makes pricing algorithms subject to state antitrust law, protecting consumers from price increases and false scarcity generated through unlawful collusion.

The bill explicitly prohibits the use of pricing algorithms to fix prices, and the lawsuit alleges that the gas station operators have been using Kalibrate’s software to do just that, which is a violation of antitrust law.

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Companies are prohibited from engaging in practices that restrain trade or commerce, and the use of pricing algorithms to fix prices is a clear violation of this law, as stated in the filing.

The lawsuit against the gas station operators and Kalibrate is a significant development in the ongoing debate over the use of AI-powered pricing algorithms and their impact on consumers.