Refund must be issued to customer who received false info from Air Canada chatbot, tribunal rules

Air Canada chatbot lawsuit overview: 

• Who: Air Canada was ordered to pay 650 Canadian dollars to Jake Moffat to refund a portion of a bereavement fare.  
• Why: An Air Canada chatbot incorrectly cited the company’s policy on bereavement fares to Moffat.
• Where: The Air Canada refund ruling came from the British Columbia Civil Resolution Tribunal.

An Air Canada chatbot incorrectly cited the airline’s policy for bereavement fare discounts, and now the company has to pay up, a tribunal has ruled.

Customer Jake Moffat will receive a refund of $650, the difference between the fare he paid and the bereavement discounted rate, along with $36 in pre-judgment interest and $125 in court fees, the British Columbia Civil Resolution Tribunal ruled.

Moffat purchased the flight from Vancouver to Toronto in November 2022 following the death of his grandmother, and used the Air Canada chatbot to find out about the company’s bereavement fare policy. However, Air Canada representatives later told Moffat after he purchased the flight that retroactive refund applications were not accepted.

“I find Air Canada did not take reasonable care to ensure its chatbot was accurate,” Tribunal Member Christopher C. Rivers wrote in the Air Canada refund ruling. “While Air Canada argues Mr. Moffatt could find the correct information on another part of its website, it does not explain why the web page titled “Bereavement travel” was inherently more trustworthy than its chatbot. It also does not explain why customers should have to double-check information found in one part of its website on another part of its website.”

$200 coupon offer not an offset for Air Canada refund, tribunal says

Air Canada offered Moffat a $200 coupon — which he didn’t use — but the tribunal ruled that should not be an offset in the refund.

The airline made attempts to claim it was not responsible for the chatbot’s information, but the tribunal found that argument unconvincing.

“In effect, Air Canada suggests the chatbot is a separate legal entity that is responsible for its own actions,” Rivers wrote. “This is a remarkable submission. While a chatbot has an interactive component, it is still just a part of Air Canada’s website. It should be obvious to Air Canada that it is responsible for all the information on its website.”

Air Canada and British Airways agreed to a now-closed $16 million settlement to resolve allegations they worked together to fix the price of air cargo freight services.

Has a chatbot given you incorrect information related to airline policy? Let us know in the comments.

The Air Canada chatbot lawsuit is Moffat v. Air Canada, Case No. 024 BCCRT 149, in front of the British Columbia Civil Resolution Tribunal.

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