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Lawsuit: Gas Stations Used AI Tool 'Calibrate' to Raise Pump Prices
A breakdown of a California lawsuit alleging BP, Circle K, 7-Eleven and Walmart used an AI pricing tool called Calibrate to inflate gas prices using shared confidential data. Useful for consumers, privacy watchdogs and compliance professionals tracking algorithmic pricing practices.
Transcript
A new lawsuit claims gas stations are actually using AI to drive up prices at the pump. California drivers are suing seven companies including BP, Circle K, 7 -Eleven, and Walmart. They claim they're using an AI tool called Calibrate with a K to adjust prices based on confidential data. The lawsuit claims this has increased gas prices by as much as 30 cents a gallon. Walmart told ABC News they are reviewing... the complaint and will respond appropriately in court all right how they're doing this is really wild and we need to pay very close attention to this because what they're doing is all these companies are feeding in their confidential real -time data into this ai okay so this means sales volumes historical pricing everything and then the ai is using machine learning and algorithms to maximize profits based on all this data like traffic patterns, time of day, competitor moves, weather events. So all this data is being fed into this AI by all these separate companies. And then the AI is compiling all this information and finding out a way to maximize the profits for everyone. So you can actually pay more based on the time of day and how much traffic there is and how many people are on the road going to these pumps. It knows all that and is trying to maximize. profits. This is wild and it's going to be used in so many industries to squeeze us for everything that we have.