Air Canada says chatbot that misled customer was ‘responsible for its own actions’

Air Canada is Canada's largest carrier

Air Canada has been ordered to pay compensation to a man who was misled into paying full price for a ticket by the airline’s chatbot. In 2022, Jake Moffatt contacted Canada’s largest airline to determine whether he qualified for bereavement fares after the death of his grandmother, reports CBC News.

While talking to Air Canada’s support chatbot, Moffatt also asked whether bereavement fares could be granted retroactively.

The chatbot told Moffatt he could apply for the refund “within 90 days of the date your ticket was issued” by filling an online form. The British Columbia resident then booked tickets online to attend his grandmother’s funeral in Toronto.

However, when he applied for a refund between bereavement fare and normal fare, Air Canada informed him that bereavement rates would not be applicable on completed travel.

Moffatt presented Air Canada with a screenshot of its chatbot’s advice, and the airline admitted that the bot had used “misleading words.” The airline assured him that they would update the bot with correct information.

Moffatt sued Air Canada for the fare difference.

Air Canada argued that the chatbot was a “separate legal entity” and thus was “responsible for its actions,” reported The Guardian.

The baffling defence did not earn the airline any positive publicity. In its decision, Civil Resolution Tribunal (CRT) member Christopher Rivers called it a “remarkable submission.”

“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,” wrote Rivers. “It makes no difference whether the information comes from a static page or a chatbot.”

Air Canada also argued that the correct information on bereavement fares was available on its website. However, Rivers said the airline 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.

Canada’s flag carrier has now been ordered to pay C$650.88 to Moffatt, which is the fare difference he sued the airline for, as well as C$36.14 in pre-judgment interest and C$125 in fees.