SACRAMENTO, CALIFORNIA / Content Syndication Services / – Three California drivers filed a proposed class action on June 22 accusing major fuel retailers and pricing software provider Kalibrate of using artificial intelligence to raise gasoline prices across the state. The complaint in U.S. District Court in Sacramento says the companies used Kalibrate Fuel Pricing to coordinate retail pump prices. It seeks class status, damages, and a jury trial for drivers who bought fuel at affected stations.
The lawsuit names Knowledge Support Systems Inc., which does business as Kalibrate, along with Marathon Petroleum, 7-Eleven, Speedway, EG America, BP Products North America, TravelCenters of America, Walmart, Sam’s Club, Circle K Stores and Albertsons. The complaint says these gas station defendants control more than 1,700 California fuel locations. It says the named retailers used or licensed Kalibrate Fuel Pricing at stations in markets including Chula Vista, Lodi, Menifee, Turlock, Yuba City and Yucaipa.
Plaintiffs Joel Casciani, Paola Hartman and Crystal Turnbough accuse the defendants of violating California antitrust law through a common pricing algorithm. The complaint says the tool uses public and nonpublic data from competing stations. It also says the system can automate price changes and guide stations toward shared pricing outcomes. The allegations remain unproven. The court has not certified a class or made any finding that the defendants broke the law.
Algorithm pricing claim
The complaint centers on Kalibrate Fuel Pricing, an AI gas pricing platform described as software that can connect to station pumps and signs. Plaintiffs say the system analyzes competitor prices, sales volumes, margins and local demand. They claim the tool lowers the risk of price undercutting among nearby stations. They also claim it can support marketwide increases when several station operators use the same system in the same area. The filing calls that process a replacement for independent pricing decisions.
The proposed class action cites California’s Cartwright Act and Assembly Bill 325. AB 325 took effect on Jan. 1 and covers common pricing algorithms under state antitrust law. The law bars use or distribution of such an algorithm as part of a trade restraint. The complaint says a mean overcharge at stations using Kalibrate Fuel Pricing reached about 6 cents per gallon. It says areas with high adoption could see increases of up to 30 cents per gallon.
Drivers seek damages
The plaintiffs seek to represent people and entities that bought gasoline at California stations where Kalibrate Fuel Pricing operated from June 22, 2022, to the present. The complaint lists several examples of purchases by the named plaintiffs. It says Casciani bought gasoline at ARCO stations in Chula Vista. It says Hartman bought fuel at Circle K in Perris. It says Turnbough bought gas at ARCO in Yuba City and a Walmart Fuel and Convenience Store in Marysville.
The lawsuit follows California’s new law on algorithmic pricing in consumer markets. The complaint says each one-cent increase in retail gasoline prices costs California drivers about $134 million a year. It asks the court to certify the class and award damages. It also asks for a judgment that the conduct violated state antitrust law. The complaint does not state a specific damages amount. The case opened as a civil antitrust action and includes a demand for a jury trial.