Air Canada Held Accountable for Chatbot Error
Air Canada is financially responsible for a chatbot error that misled a passenger, according to a recent ruling by a Canadian tribunal. Consequently, the airline must partially refund the passenger for the ticket price.
Case Overview
Customer Jake Moffatt had sought information about Air Canada’s bereavement policy from its chatbot following the death of his grandmother in 2022. The chatbot informed him that he could retroactively claim a reduced bereavement fare for his flight from Vancouver to Toronto.
However, when Moffatt attempted to claim the refund, an Air Canada employee stated that the airline does not, in fact, offer that service.
Tribunal Findings
A screenshot included in the tribunal’s decision dated February 14 detailed the chatbot’s message:
“If you need to travel immediately or have already travelled 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.”
The airline contended it should not be held liable for discrepancies between its AI entities and actual policies, a stance that tribunal member Christopher Rivers found “remarkable.” He stated, “Air Canada argues it cannot be held liable for information provided by one of its agents, servants, or representatives—including a chatbot.” Rivers emphasized that the chatbot is a part of Air Canada’s website, and thus, the airline is responsible for all information presented.
Financial Implications
Moffatt is entitled to a refund of $812.02, based on the tribunal’s decision. As of the latest updates, Air Canada had not returned a request for comment but stated that it would comply with the tribunal’s decision.
Challenges in the Airline Industry
This ruling emerges amid increasing scrutiny of airlines by both consumers and employees regarding fairness in service. In 2023, Spirit Airlines settled a class-action lawsuit totaling $8.25 million for additional fees charged to customers booking through online travel agents.
Simultaneously, American Airlines faced a significant penalty last year, being ordered to pay over $4 million for keeping passengers on the tarmac for extended periods without allowing them to deplane.
Airlines are increasingly relying on AI technologies to handle customer service issues. Nevertheless, as demonstrated in Moffatt’s case, the reliance on automated systems can lead to complications and liability issues.
Advice for Travelers
In the U.S., the Department of Transportation (DOT) advises air travelers with complaints to initially contact the airline directly. Airlines are required to acknowledge complaints within 30 days and provide written responses within 60 days. If travelers feel their issues remain unresolved, they can file their complaints with the DOT.
