The company argued that its chatbot was responsible for its actions when providing incorrect information about bereavement fare
Canada’s largest airline must compensate a customer who was misled into purchasing a full-price ticket due to inaccurate information provided by its chatbot.
Air Canada faced additional criticism for later trying to distance itself from the mistake by asserting that the bot was “responsible for its own actions.”
In the context of a broader trend toward automating services, this case, the first of its kind in Canada, raises questions about the level of control companies exercise over their chat tools.
In 2022, Jake Moffatt reached out to Air Canada to inquire about the documents required to qualify for a bereavement fare and whether retroactive refunds were possible.
Based on Moffat’s screenshot of a chatbot conversation, the British Columbia resident was informed that he could request a refund “within 90 days of the date your ticket was issued” by filling out an online form.
Subsequently, Moffatt booked tickets to and from Toronto for a family member’s funeral. However, when he sought a refund, Air Canada stated that bereavement rates did not apply to completed travel and directed him to the bereavement section of the company’s website.
After being presented with a screenshot of the chatbot’s advice several months later, Air Canada acknowledged to Moffatt that the bot had used “misleading words” in its guidance. The airline informed Moffatt that it would update the chatbot.
Moffatt subsequently filed a lawsuit for the fare difference, leading Air Canada to make what tribunal member Christopher Rivers described as a “remarkable submission” in its defense.
Air Canada contended that despite the error, the chatbot was a “separate legal entity” and therefore accountable for its actions.
“While a chatbot has an interactive component, it is still just a part of Air Canada’s website. It should be obvious to Air Canada that it is responsible for all the information on its website,” Rivers wrote. “It makes no difference whether the information comes from a static page or a chatbot.”
Despite Air Canada’s argument that correct information was available on its website, Rivers noted that the company did “not explain why the webpage titled ‘Bereavement Travel’ was inherently more trustworthy” than its chatbot.
“There is no reason why Mr. Moffatt should know that one section of Air Canada’s webpage is accurate, and another is not,” he wrote.
Air Canada is required to compensate Moffatt with C$650.88, which represents the discrepancy between the amount he paid for his flight and a discounted bereavement fare. Additionally, pre-judgment interest of C$36.14 and fees of C$125 are to be paid.
