A chatbot on Air Canada's website gave misleading information to a passenger.
A Canadian man has been awarded a settlement from Air Canada after the airline’s web chatbot incorrectly quoted a policy, in a ruling by British Columbia’s Civil Resolution Tribunal (CRT).
Jake Moffatt contacted Air Canada via the chatbot in November 2022 after a death in the family to inquire about its bereavement fare policy. The chatbot informed him that he could apply for a partial refund of his fare within 90 days upon submitting documentation.
After the conversation with the chatbot, he bought a ticket for the next day, from Vancouver to Toronto. Several days later, he purchased a return ticket, having relied on the same information from the chatbot. He also spoke to an Air Canada telephone agent, who informed him of what the fare would be after the bereavement discount. Immediately upon his return, he provided the requested documentation to Air Canada.
Air Canada denied the bereavement discount, pointing to its policy that discounts must be requested and gotten before travel commences, and that the airline would not consider any applications for bereavement discounts once travel is complete.
Moffatt provided information about his conversation with the chatbot, and an Air Canada representative admitted the chatbot used “misleading words,” but they also noted that the chatbot provided a link to the bereavement policy, which would have informed him of the correct policy, but that they would have the chatbot fixed to provide correct information moving forward. They also offered a $200 travel credit as a gesture of goodwill, which he refused, as it was substantially less than the $880 discount he believed he was entitled to.
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Dissatisfied with Air Canada’s proposed resolution, Moffatt then filed a complaint with British Columbia’s CRT. The online tribunal is the first of its kind in Canada and is designed to “offer an accessible, affordable way to resolve disputes without needing a lawyer or attending court.” The parties first start with mediation, then the case progresses to a tribunal, comprised of attorneys licensed to practice law in the province.
The CRT’s decisions have the effect of court decisions, although parties who disagree with rulings maintain the right to appeal to British Columbia’s regular small claims courts for resolution.
Air Canada argued that it wasn’t liable for misrepresentations made by its online chatbot because it was a “separate legal entity responsible for its own actions”.
Tribunal Member Christopher C. Rivers disagreed, writing in part that, “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.”
Rivers also noted that Air Canada failed to explain why consumers should be expected to double-check the veracity of a statement by a chatbot by reading other parts of the same website.
Rivers awarded slightly less than what Moffatt had filed for, citing that he had failed to account for certain ticket taxes on his calculation of the difference between what he paid and what he should have paid. Rivers also ordered Air Canada to pay interest, and reimburse the $125 filing fee to have the case considered by CRT.
In the United States, consumers can complain to the U.S. Department of Transportation. However, unlike British Columbia’s CRT, the DOT is not an enforcement body, and generally cannot render judgments or require airlines to settle with consumers. U.S. air travelers in similar disputes with an airline who are seeking monetary relief would have to file their claims through the small claims court systems in their state.