After the death of his grandmother, a customer asked Air Canada’s chatbot about the airline’s bereavement travel policy. The chatbot provided incorrect information, leading the customer to book a flight and then request a refund. However, the airline refused his refund request, arguing that its policy did not allow refunds after booking the flight. In addition, the airline proposed to update the chatbot and offer the consumer a $200 voucher to use on a future flight.
Dissatisfied with this decision, the customer rejected the coupon and filed a claim in small claims court (Civil Resolution Tribunal of Canada).
The court decided in favor of the customer by considering that Air Canada was responsible for the incorrect information provided by its chatbot. The court questioned Air Canada’s defense that the chatbot was a separate legal entity and argued that the website and the chatbot should be equally reliable for customers. As a final decision, the court ordered Air Canada to pay a partial refund of C$650.88, plus additional damages to cover interest on the airline ticket and the customer t’s legal fees.
Air Canada has declared that it will comply with the court’s decision and considers the matter closed.
The judgment highlights the need for transparency and liability that companies must have when using artificial intelligence for decision making and customer service. Lack of precision in the information provided by a chatbot and the absence of warnings about its possible inaccuracy may have significant legal consequences for companies in the future.
