Air Canada is facing accountability for a discount erroneously promised by its chatbot to a customer, as reported by the Washington Post.
According to a ruling by Canada’s Civil Resolution Tribunal (CRT), the airline is required to reimburse Jake Moffat, who, two years ago, bought tickets to attend his grandmother’s funeral. He was under the impression that by paying the full price initially, he could later claim a discount through the airline’s bereavement policy. This misleading information was provided by a support chatbot on Air Canada’s website, resulting in a financial loss of several hundred dollars for the airline.
The tribunal’s decision could establish a precedent for holding companies responsible for inaccuracies communicated through interactive technology tools like generative artificial intelligence, when used in customer service roles.
In November 2022, Moffat spent over $700 (CAD), inclusive of taxes and additional charges, on a next-day ticket from Vancouver to Toronto. The chatbot on the Air Canada website assured him that he could receive a partial refund under the bereavement policy if he applied within 90 days. Subsequently, Moffat also purchased a return flight for a similar amount, influenced by the promised discount.
However, Air Canada clarified that their bereavement policy requires customers to request discounted fares before their travel, and retroactive refunds are not permitted. Despite Moffat’s efforts to claim a refund based on the chatbot’s information, the airline denied his request, leading him to seek recourse through the CRT.
During the proceedings, the airline attempted to evade responsibility by claiming that the chatbot operated as a separate legal entity. Nonetheless, the tribunal held Air Canada accountable for ensuring the accuracy of information provided on its website, whether through static pages or interactive chatbots.
Tribunal member Christopher Rivers emphasized that companies must verify the accuracy of their representations to avoid misleading customers. He highlighted that customers should not be burdened with distinguishing between accurate and erroneous information presented on a business’s website.
Ultimately, the CRT ruled in favor of Moffat, ordering Air Canada to pay $812 (CAD) in damages and tribunal fees.
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Megan Cerullo
Megan Cerullo, a reporter based in New York for CBS MoneyWatch, specializes in covering small business, workplace, health care, consumer spending, and personal finance topics. She frequently contributes to CBS News Streaming, offering insights on her investigative work.
