AI helped manipulate prices, say California consumers
Fuel station operators in the United States, including Walmart, BP, Circle K, Marathon, 7-Eleven and Albertsons, have been accused of illegally manipulating fuel prices using artificial intelligence.
American consumers filed a lawsuit against the listed companies in the state of California, where fuel prices are already among the highest in the United States.
According to data cited by The Guardian, California residents pay an average of 5,58 USD per gallon of gasoline, while the national average is 3,93 USD.
The lawsuit states that stations used an AI-based tool that analyzes data from competing stations to coordinate high prices.
This practice allegedly violates the antitrust law, the so-called Cartwright Act, and could result in compensation for consumers who overpaid for fuel.
“Drivers say that gas prices rose by as much as 30 cents per gallon in regions where a significant portion of stations use an AI-based tool developed by Kalibrate Fuel Systems,” the statement read.
“As stated in the lawsuit, each cent represents an additional cost of 134 million dollars per year for California drivers, causing gas prices to reach astronomical levels, sometimes up to 7 dollars per gallon,” the statement added.
According to estimates, the tool is used by over 1700 gas stations belonging to the listed brands.
According to Bloomberg, Walmart representatives said they “are reviewing the complaint and will respond appropriately in court,” while BP declined to comment.
Spokespersons for Marathon, 7-Eleven and Kalibrate did not respond to email requests for comment on the lawsuit.
Gasoline prices in the United States fell to 2,96 USD per gallon in response to reports of a breakthrough in the Middle East, resulting from negotiated terms of an agreement between Washington and Tehran.
Source: Trading Economics.
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Sources: The Guardian, Bloomberg.
