Vancouver man wins Air Canada chatbot case

Air Canada is on the hook for $812.02 after its chatbot mistakenly told a customer that bereavement fares could be applied retroactively.

Following the death of his grandmother in November 2022, Vancouver resident Jake Moffatt booked flights using the website’s chatbot, which advised him he could pay full fare and apply for a bereavement fare later, according to the decision by B.C. civil resolution tribunal.

An Air Canada employee later informed Moffatt he wasn’t eligible to apply for the discount following his flights, despite the chatbot telling him he could submit his claim within 90 days to get a refund. The airline argued it could not be held liable for the information provided by the chatbot.

“Air Canada argues it cannot be held liable for information provided by one of its agents, servants, or representatives — including a chatbot,” said tribunal member Christopher Rivers. “It does not explain why it believes that is the case. In effect, Air Canada suggests the chatbot is a separate legal entity that is responsible for its own actions. This is a remarkable submission.”

Moffatt’s total fare for the return trip from Vancouver to Toronto was $1,640. He was told the bereavement fare would be about $760 in total, an $880 difference, he told the tribunal.

In his request for the partial refund, Moffatt included a screenshot of the chatbot conversation in an email to Air Canada. The airline responded that the chatbot had provided “misleading words,” refused the refund, and said the correct information on its bereavement policies was on its website.

Rivers said that the “applicable standard of care requires a company to take reasonable care to ensure their representations” are not misleading.

“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,” he said. “It makes no difference whether the information comes from a static page or a chatbot.

“I find Air Canada did not take reasonable care to ensure its chatbot was accurate. 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,” Rivers added.

Moffatt argued he would not have flown last-minute if he had known he would have to pay the full fare.

Rivers ruled that Moffatt was entitled to $812.02, including $650.88 in damages, $36.14 in prejudgment interest and $125 in CRT fees.

In an emailed statement to the Post, Air Canada said it would comply with the ruling and considered the matter closed.