Air Canada has been ordered to pay compensation to a customer who sued the airline after the AI chatbot on its website gave incorrect information about refunds.
In 2022, Jake Moffatt contacted Air Canada to determine which documents were needed to qualify for a bereavement fare, and if refunds could be granted retroactively.
According to Moffatt’s screenshot of a conversation with the chatbot, the customer was told he could apply for the refund “within 90 days of the date your ticket was issued” by completing an online form, The Guardian reports.
Moffatt booked tickets to and from Toronto to attend the funeral of a family member. He then asked Air Canada for a refund, which the airline refused, stating that bereavement rates did not apply to completed travel and pointed to the bereavement section of the company’s website.
Air Canada argued the chatbot was a separate legal entity with bosses claiming the bot was “responsible for its own actions”. This prompted criticism that the airline was attempting to distance itself from the error.
The airline also stated the chatbot’s response had a link to the actual policy and that this meant Moffatt should have known bereavement rates could not be requested after the flight.
After trying to get a refund for months, Moffatt filed a small claims complaint in Canada’s Civil Resolution Tribunal.
Christopher Rivers, a member of the tribunal, wrote in his decision that Air Canada must compensate Moffatt: “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. It makes no difference whether the information comes from a static page or a chatbot.”
He added: “There is no reason why Mr Moffatt should know that one section of Air Canada’s webpage is accurate, and another is not”.
According to the decision, Moffatt said he would not have bought the tickets if he had to pay the full fare.
Rivers ordered Air Canada to pay Moffatt $483 to cover the promised refund. The airline also had to pay $27 in interest and about $93 in fees.
