Air Canada was ordered to pay compensation to a customer who purchased a full-price ticket after receiving misleading information from the airline’s chatbot. The company has fielded criticism for saying the chatbot was “responsible for its own actions.”
Customer Jake Moffatt contacted the airline in 2022 seeking information about bereavement fares, including whether refunds are possible after a flight has been taken. The chatbot told him he could apply for a refund within 90 days of ticket issuance. However, when he applied, Air Canada said it does not grant retroactive refunds, later acknowledging the chatbot had used “misleading words” and saying it would update the bot.
Moffatt sued Air Canada for the difference in fare, and the airline posited that the chatbot was a “separate legal entity” responsible for its actions. This argument did not fly, and the airline must pay Moffatt C$650.88 for the fare difference, C$36.14 in pre-judgment interest and C$125 in fees.
“While a chatbot has an interactive component, it is still just a part of Air Canada’s website,” said the tribunal member Christopher Rivers. “It should be obvious to Air Canada that it is responsible for all the information on its website. It makes no difference whether the information comes from a static page or a chatbot.”
