Source: Fortune
Summary
A federal lawsuit accuses gas station operators in California of using AI-powered software to collude and drive up prices at the pump. The lawsuit targets Kalibrate, a fuel-pricing software system used by gas station giants such as Marathon and Circle K. The plaintiffs allege that Kalibrate helps coordinate high prices and discourages users from pricing their gas lower than competitors. The lawsuit seeks to represent California drivers who bought gas at stations using Kalibrate software since June 2022.
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The strategy enters a familiar phase.
Kalibrate’s “restoration” tool helps gas stations raise prices contemporaneously and by a large amount. The lawsuit alleges that the software facilitates cartel-like collusion, with AI replacing secret deals “over cigars in a smoky back room.” The defendants, including BP, Walmart, and Albertsons, operate over 1,700 gas stations in California. The lawsuit seeks damages for California drivers who bought gas at stations using Kalibrate software.
The numbers tell one story: a single cent increase at the pump drains $134 million from California drivers’ wallets every year.
Author: Evan Null
