Oh, Canada, oh, Canada. Oh, Canada Air, that is. We do not want to mislead you.
Canada’s largest airline, Air Canada, has been ordered to compensate a customer after its chatbot provided inaccurate information, leading him to purchase a full-price ticket instead of a potentially cheaper option. The airline faced further criticism for attempting to distance itself from the error by claiming the bot was “responsible for its actions.”
This case, the first of its kind in Canada, highlights the growing concerns surrounding the level of oversight companies have over automated chat tools, mainly as they increasingly rely on them for customer service.
In 2022, seeking information about bereavement fares, Jake Moffatt reached Air Canada’s chatbot. According to a screenshot he captured, the chatbot advised him that refunds could be obtained “within 90 days of the date your ticket was issued” through an online form.
Based on this information, Moffatt booked roundtrip tickets to Toronto for a family member’s funeral. However, upon requesting a refund, Air Canada denied his claim, stating that bereavement fares only applied to future travel, as outlined on their website.
Air Canada initially admitted to misleading Moffatt with its chatbot’s inaccurate advice on bereavement fares. They promised to update the chatbot but faced legal action from Moffatt seeking the fare difference.
Air Canada’s argument on the chatbot situation
Air Canada’s defense argued the chatbot was a separate entity responsible for its actions. However, the tribunal disagreed, stating that the chatbot remains part of Air Canada’s website, making the airline ultimately accountable for all information presented there, regardless of source (static page or chatbot).
While Air Canada pointed to accurate information on their website, the tribunal questioned why the “Bereavement Travel” section was deemed inherently more reliable than the chatbot. They argued that Moffatt had no reason to differentiate the accuracy of different sections within the same website.
The verdict: Pay Moffatt
Consequently, Air Canada was ordered to compensate Moffatt with the fare difference (C$650.88), pre-judgment interest (C$36.14), and additional fees (C$125). This case highlights the importance of companies responsible for the information disseminated through all channels, including chatbots, which can significantly impact customer decisions.
