Air Canada chatbot gives false bereavement fare advice, tribunal orders compensation
Summary
Jake Moffatt, a British Columbia resident, booked full-fare last-minute flights to Toronto after his grandmother died, relying on Air Canada's website chatbot which incorrectly told him he could apply retroactively for a bereavement fare discount within 90 days of travel. Air Canada denied the refund, citing its actual policy requiring requests before travel. Moffatt filed a claim with the BC Civil Resolution Tribunal, which ruled on February 14, 2024 that Air Canada was liable for negligent misrepresentation, rejecting the airline's extraordinary argument that its chatbot was 'a separate legal entity responsible for its own actions.' The tribunal awarded Moffatt C$812.02 in damages and fees. The ruling established that companies are liable for all information provided on their websites, whether from static pages or chatbots.
Incident Details
Harms arising from AI or automated systems making consequential decisions without adequate oversight.