California drivers filed a proposed class action lawsuit on Monday against some of the largest gas station operators in the state, including BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons. The suit alleges these firms used an AI-based tool to share pricing data and coordinate prices at the pump, a practice the plaintiffs say violates California's Cartwright Act.
The complaint centers on the use of a software platform that allegedly analyzes competitor pricing data in real time, enabling operators to adjust their own prices in lockstep. According to the drivers, this system functions as a price-fixing mechanism, allowing the defendants to “wring more money from the pockets of consumers” rather than competing on price. The suit seeks damages and injunctive relief.
The Cartwright Act, California's primary antitrust statute, bars agreements among competitors that unreasonably restrain trade. The plaintiffs argue that the AI tool effectively creates an illegal cartel by replacing independent pricing decisions with a coordinated scheme. Similar antitrust challenges against algorithmic pricing have emerged in other sectors, such as rental housing, but this case targets the retail fuel market directly.
The case comes amid broader scrutiny of AI-driven pricing tools and their impact on consumers. If successful, the lawsuit could set a precedent limiting the use of algorithmic price coordination across industries. The complaint also raises questions about whether companies can be held liable for the actions of software they license, even when the platform is operated by a third party.
A representative for one defendant, speaking on condition of anonymity, countered that the AI tool is a standard market analysis product used to track demand and supply, not to fix prices. They argued that all pricing decisions remain under the control of individual stations and that the tool merely provides data, not mandates.