Air Canada, the largest airline in North America, was forced to issue a partial refund to a passenger after its chatbot presented incorrect information, leading the person to purchase a full-price ticket. The airline even attempted to disassociate itself from the error by claiming that the chatbot was “responsible for its actions,” according to The Guardian.
The incident occurred in 2022, when Jake Moffatt’s grandma died and he went to the Air Canada website to book a flight from Vancouver to Toronto. Because he didn’t understand how the airline’s bereavement pricing worked, Moffatt decided to ask the chatbot to explain the policy to him.
However, Moffatt was given incorrect information by the chatbot, which encouraged the client to book a ticket and then request a refund within 90 days, according to Ars Technica.
In a snapshot of his communication with the Air Canada chatbot, Moffatt was told that he could claim a refund “within 90 days of the date your ticket was issued” by filling out an online form, according to the report.
“If you need to travel immediately or have already traveled and would like to submit your ticket for a reduced bereavement rate, kindly do so within 90 days of the date your ticket was issued by completing our Ticket Refund Application form,” read the screenshot shared by him.
Airline denies bereavement refund for completed travel
Moffatt, who had bought tickets to and from Toronto to attend his grandmother’s funeral, was startled when he filed for a refund. The airline informed him that bereavement fares did not apply to completed travel and sent him to the grief section of its official website.
Moffatt contacted Air Canada with a screenshot of the chatbot’s advice months later, but the airline reportedly told him that the chatbot used “misleading words,” and that it would upgrade the chatbot software.
The passengers appeared dissatisfied with the airline’s response and chose to sue Air Canada for the cost difference, prompting the airline to make what tribunal member Christopher Rivers described as a “remarkable submission” in its defense, according to The Guardian.
Despite the inaccuracy, the firm claimed that the chatbot was a “separate legal entity”. As a result, the report stated that it was responsible for its own conduct.
“Air Canada argues it cannot be held liable for information provided by one of its agents, servants, or representatives—including a chatbot,” Rivers said.
Rivers noted that the airline does not explain why it believes that is the case or “why the webpage titled ‘Bereavement travel’ was inherently more trustworthy than its chatbot.”
While ruling in Moffatt’s favor, Rivers ordered Air Canada to pay a partial refund of $650.88 in Canadian dollars, as well as extra damages to cover the passenger’s tribunal fees.
