A federal class-action lawsuit filed in California alleges that numerous gas companies, including subsidiaries of Walmart and 7-Eleven, are colluding to maintain artificially high prices by employing AI-powered software provided by Kalibrate. This legal challenge comes amid escalating public concern over the impact of advanced technology on the cost of living.
The lawsuit, brought forth by three drivers on behalf of a proposed class, specifically names Kalibrate and its "Kalibrate Fuel Prices" software as a tool for alleged price fixing. According to the complaint, the software incentivizes gas stations to share proprietary pricing data. Kalibrate's AI then leverages this information to recommend prices in real-time, with marketing materials suggesting it helps companies "squeeze out profit."
This case mirrors a growing trend of legal scrutiny concerning technology's role in price inflation. Similar allegations have been leveled against companies using algorithmic software for rent increases and dynamic pricing experiments by grocery delivery services. Experts suggest such individualized or coordinated pricing strategies could extend across various industries.
Attorneys involved in the gas station lawsuit argue that technology now facilitates antitrust violations, enabling competitors to fix prices without direct communication. The complaint contrasts this modern approach with the traditional image of secret backroom deals. The legal team includes former Federal Trade Commission staff members, indicating a focus on robust antitrust enforcement.
While most named companies have declined to comment, Walmart stated it would address the accusations in court. Kalibrate has issued a denial, asserting its commitment to lawful and innovative fuel-pricing technology and vowing to defend itself vigorously. The lawsuit's timing coincides with widespread consumer struggles with rising costs, particularly for essential goods like energy and housing.
California drivers already face some of the nation's highest fuel prices due to taxes, fees, and global events. The lawsuit contends that Kalibrate's software exacerbates these costs, citing research suggesting a potential average price increase of six cents per gallon. California's updated antitrust law explicitly addresses algorithmic pricing that leads to common rates, even without direct competitor communication, deeming it a form of price fixing.
