California drivers have filed a proposed class action lawsuit accusing major gas station operators, including BP, Circle K, and Walmart, along with AI pricing company Kalibrate, of using artificial intelligence to artificially inflate gasoline prices. The suit alleges that these companies violated California’s Cartwright Act and Assembly Bill 325 by employing an AI tool that allegedly coordinates high prices among competing stations. Drivers claim this scheme has led to price increases of up to 30 cents per gallon in affected areas, contributing to some of the highest gas prices in the nation.
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New Democratic Party Leader Avi Lewis has called on the federal government to ban algorithmic pricing, a practice where retailers use AI and data to set different prices for consumers. Lewis described this “surveillance pricing” as “downright creepy” and a “rip-off,” alleging that Big Tech and retailers are collaborating to exploit Canadians. The NDP plans to introduce a parliamentary motion to prohibit this dynamic pricing, a move echoed by the United Food and Commercial Workers Union. Recent polling indicates that a majority of Canadians believe algorithmic pricing is unfair and should be banned or more strictly regulated, with concerns also raised by the Competition Bureau and consumer advocacy groups regarding its potential impact on pricing.
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John Q. Hosedrinker