Incident · 2024 · Airline

Air Canada’s chatbot promises a retroactive bereavement fare

In February 2024, British Columbia’s Civil Resolution Tribunal held Air Canada liable for negligent misrepresentation after its website chatbot told Jake Moffatt he could claim a bereavement fare after travel, which airline policy did not allow. The tribunal rejected the argument that the chatbot was responsible for its own actions and ordered C$812.02 in damages, interest and fees.

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What happened

In November 2022, after his grandmother died, Moffatt asked the chatbot about bereavement fares. It told him he could buy a ticket and apply for a partial refund under the bereavement policy within 90 days. He bought tickets between Vancouver and Toronto.

Air Canada’s policy did not allow bereavement refunds after travel. The airline refused the refund and argued, in the tribunal’s summary, that the chatbot was “a separate legal entity that is responsible for its own actions.”

Tribunal member Christopher Rivers wrote: “While a chatbot has an interactive component, it is still just a part of Air Canada’s website.” He added that it “makes no difference whether the information comes from a static page or a chatbot.”

What happened next

Air Canada was ordered to pay C$650.88 in damages, C$36.14 in pre-judgment interest and C$125 in tribunal fees.

Legal or regulatory result

Moffatt v. Air Canada, 2024 BCCRT 149: negligent misrepresentation. The airline is responsible for all information on its website, including its chatbot.

What would have stopped it

  1. Answer fare and refund policy questions only from the current policy text retrieved by a tool, and quote it.
  2. Block statements that a customer can claim money later unless the policy tool returns that rule.
  3. Keep chatbot transcripts on the customer record so staff can honor or correct a promise quickly.

Sources

  1. CanLII: Moffatt v. Air Canada, 2024 BCCRT 149
  2. CBS News: Air Canada chatbot costs airline discount it wrongly offered customer
  3. McCarthy Tétrault: Moffatt v. Air Canada

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