But when Moffat later tried to get the discount, he learned that the chatbot was wrong. Air Canada does not grant a bereavement fee unless the request is made prior to the flight. The airline later argued that the chatbot was The decision said the separate legal entity was “responsible for its actions.”
Moffat filed suit in a Canadian court, which ruled on Wednesday that Air Canada owes Moffat more than $600 in damages and court fees after failing to provide “reasonable care.”
As companies add AI-powered chatbots to their websites in hopes of providing faster service, the Air Canada dispute highlights issues associated with the growing technology and how courts can address questions of accountability. The Canadian court in this case sided with the customer, ruling that Air Canada did not guarantee the accuracy of its chatbot.
“Although the chatbot has an interactive component, it remains merely part of the Air Canada website,” tribunal member Christopher Rivers wrote in his decision. “It should be clear to Air Canada that it is responsible for all information on its website. It makes no difference whether the information comes from a static page or a chatbot.”
An Air Canada spokesperson said in a statement to the Washington Post that the airline will abide by the court's decision.
Moffat first visited Air Canada's website on Nov. 11, 2022, the day his grandmother died, according to the court. There, the chatbot asked about bereavement prices.
“If you need to travel immediately or have already traveled and would like to offer your ticket at a discounted price, please do so within 90 days of the date your ticket was issued by completing the Ticket Refund Request Form,” the chatbot replied, according to the court’s decision.
The chatbot's responses link to the airline's web page detailing its bereavement travel policy. The webpage states that the airline prohibits “refunds for travel that has already occurred.”
Moffat, relying on the chatbot's instructions, booked a one-way ticket for about $590 from Vancouver to Toronto, the decision said. A few days later, he paid approximately $627 for a return flight.
On 17 November 2022, Moffat requested a refund through the airline's order form. He submitted his grandmother's death certificate and sent an email to Air Canada employees for the next three months, the order said.
The decision said that in February 2023, an Air Canada employee told Moffat that the chatbot had misled him. The decision said Moffat continued to exchange emails with employees but did not receive his money back, prompting him to file suit.
Moffat said he would not have purchased the tickets if he had known he would have to pay the full fare, according to the decision. Moffat believed he should have paid about $564 total, but ended up paying approximately $1,209, the decision said.
Air Canada said the chatbot is a “separate legal entity” and the airline should not be responsible for the information provided by the chatbot, according to the court's decision. Air Canada also claimed that Moffat could have found the airline's bereavement policy by further scanning its website, the decision said.
But Rivers ruled those claims were unreasonable.
Rivers determined that Moffat overpaid about $483. He ordered Air Canada to pay those fees to Moffat as well as approximately $93 in court fees and $26.80 in pre-judgment interest.
“Moffat says, and I agree, that they relied on the chatbot to provide accurate information. “I find that was reasonable in the circumstances,” Rivers wrote in the ruling. “There is no reason for Mr Moffat to know that a section of the company’s web page Air Canada is accurate, the other is not.”
Jonathan Edwards contributed to this report.
