Air Canada Ordered to Compensate Passenger after Chatbot Error

Air Canada has been ordered to pay hundreds of dollars in damages to a passenger who received incorrect information from its online chatbot. Jake Moffatt took the airline to a small-claims tribunal after it refused to refund him for flights he booked to attend his grandmother’s funeral. Before purchasing the tickets, Moffatt consulted Air Canada’s chatbot for information on bereavement fares, which offer special low rates for those traveling due to the loss of an immediate family member.

The chatbot advised Moffatt that he could purchase a normal-priced ticket and claim back the bereavement discount within 90 days. Following the advice, he booked a one-way ticket to Toronto and a return flight to Vancouver. Moffatt also confirmed with an Air Canada representative that he would be eligible for the bereavement discount, without being informed about the inability to claim the discount after purchasing the tickets.

When Moffatt submitted his claim for a refund, including his grandmother’s death certificate, Air Canada denied his request, stating that bereavement fares cannot be claimed back after purchasing flights. Moffatt argued that the airline was negligent and misrepresented information, leading to financial loss.

The tribunal agreed with Moffatt, ruling that Air Canada should have taken reasonable care to ensure the accuracy of its chatbot. The tribunal member pointed out that the chatbot is part of Air Canada’s website and therefore the airline is responsible for the information it provides. Additionally, the tribunal found that Air Canada failed to explain why customers should have to double-check information from different parts of its website.

Air Canada has been ordered to pay Moffatt CA$812.02, including damages. The airline has stated that it will comply with the ruling. This case serves as a reminder that while AI chatbots can be useful, they may provide incorrect information, and users should exercise caution when relying on them.

Air Canada ordered to pay damages for incorrect information from chatbot

Jake Moffatt took Air Canada to a small-claims tribunal after the airline refused to refund him for flights he booked to attend his grandmother’s funeral. Moffatt had consulted Air Canada’s chatbot for information on bereavement fares, but received incorrect advice that he could claim back the discount within 90 days.

The tribunal ruled in favor of Moffatt, stating that Air Canada should have ensured the accuracy of its chatbot. The airline was found negligent in providing misleading information, leading to financial loss for the customer.

Key terms:
1. Small-claims tribunal: A legal process for resolving minor disputes involving small amounts of money, typically heard in a less formal setting compared to a regular court.
2. Bereavement fares: Special low rates offered by airlines for individuals traveling due to the loss of an immediate family member.

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