A group of California drivers has launched a lawsuit against several big-name gas station operators, including BP, Circle K, Marathon Petroleum, 7-Eleven, Walmart, and Albertsons—claiming they used artificial intelligence to jack up gasoline prices.

This proposed class-action suit, filed in a federal court in Sacramento, argues that these companies broke California's Cartwright Act by employing an AI-driven pricing tool from Kalibrate.

The lawsuit suggests that this software pulls data from nearby gas stations to set fuel prices, which allegedly stifles competition and raises costs for consumers.

The plaintiffs contend that this approach is in violation of California Assembly Bill 325, a law that just went into effect on January 1 to prevent algorithmic price-fixing. According to the lawsuit, in regions where a significant number of stations utilize this software, gas prices may have jumped by as much as 30 cents a gallon.

The complaint notes that every one-cent rise in gas prices leads to about $134 million in extra costs for California drivers each year. The companies named in the suit run over 1,700 gas stations throughout the state.

This lawsuit is seeking damages for California motorists who believe they've been overcharged at the pump. As of now, the companies either chose not to comment or didn't respond right away to requests for statements.

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