California drivers filed a proposed class action Monday in Sacramento federal court accusing nine major fuel retailers and pricing software provider Kalibrate Fuel Systems of using an AI-driven tool to illegally coordinate pump prices, in the first legal challenge under the state’s new anti-algorithmic-pricing statute.
The complaint names BP, Circle K, Marathon Petroleum, 7-Eleven, Walmart, Albertsons, EG America, Speedway, and TravelCenters of America as defendants. Together they operate more than 1,700 California gas stations. Plaintiffs allege violations of the Cartwright Act and Assembly Bill 325 (AB 325), which took effect January 1, 2026, barring the use of a shared pricing algorithm to restrain trade.
Kalibrate Fuel Pricing used public and nonpublic competitor data to push higher prices, reduce undercutting, and suppress local competition, according to the filing. Gas prices rose as much as 30 cents per gallon in areas with high concentrations of Kalibrate users, the complaint states, with each additional cent costing California drivers $134 million per year.
A new lawsuit alleges that an AI pricing consultant named Kalibrate is the ringleader of an algorithmic price fixing scheme to raise the price of gas in California.
Claims that stations are colluding to outsource pricing decisions to Kalibrate, which is pushing prices up. pic.twitter.com/WPuxIPf3Cx— David Dayen (@ddayen) June 22, 2026
“While families struggle to afford the commute to work, defendants have conspired to put an end to competition, joining an AI-powered trust to ensure that no matter where a driver turns, the price for gasoline is artificially high,” the complaint stated.
California drivers already pay the nation’s highest pump prices, averaging $5.58 per gallon against a national average of $3.93, per the American Automobile Association (AAA), with prices surging 30% since the U.S.-Iran war began in late February.
Walmart said it is “reviewing the complaint and will respond appropriately to the Court.” BP declined to comment. Other defendants did not respond.
The case is the first courtroom test of AB 325. Kalibrate, which markets its platform as servicing more than 25,000 fuel sites globally, said users retain control over whether to accept or reject its pricing recommendations. The defendants have not yet filed responses in court.
