The biggest airline in Canada has been directed to give financial compensation for providing incorrect information through its chatbot, which led a customer to purchase a ticket at full price.
Air Canada faced more backlash for trying to distance itself from the mistake by stating that the bot was accountable for its actions.
As businesses increasingly turn to automation, the case – the first of its kind in Canada – brings up concerns about the amount of control companies have over chat tools.
In 2022, Jake Moffatt reached out to Air Canada inquiring about the necessary documents for eligibility for a bereavement fare and the possibility of retroactive refunds.
Based on the conversation screenshot shared by Moffat, the resident of British Columbia was informed that they could request a refund for their ticket within 90 days from the date it was issued by filling out an online form.
Moffatt made arrangements to travel to and from Toronto for the funeral of a relative. However, when he requested a reimbursement, Air Canada informed him that bereavement rates were not applicable for completed trips and referred him to the bereavement policy on their website.
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After being shown a screenshot of the chatbot’s advice months later, Air Canada admitted to Moffatt that the bot had provided misleading guidance and promised to update it.
Afterwards, Moffatt took legal action over the discrepancy in fare, causing Air Canada to make a surprising argument in its defense, according to tribunal member Christopher Rivers.
Air Canada stated that although there was an error, the chatbot was considered a distinct legal entity and therefore accountable for its actions.
According to Rivers, although a chatbot offers interaction, it is ultimately a component of Air Canada’s website. Therefore, Air Canada holds responsibility for all information provided on the website, regardless of whether it is from a static page or a chatbot.
Air Canada claimed that accurate information was accessible on its website. However, Rivers noted that the company failed to clarify why the webpage labeled “Bereavement Travel” was inherently more reliable than its chatbot.
He stated that there is no justification for Mr. Moffatt to have knowledge of the accuracy of one part of Air Canada’s website while another part may not be accurate.
Air Canada must pay Moffatt C$650.88, the equivalent of the difference between what Moffatt paid for his flight and a discounted bereavement fare – as well as C$36.14 in pre-judgment interest and C$125 in fees.
Source: theguardian.com
