Air Canada Takes Responsibility for Chatbot Error and Pays Compensation to Customer

Canada’s largest airline, Air Canada, has been ordered to compensate a customer after its chatbot provided inaccurate information, leading the customer to purchase a full-price ticket instead of a discounted bereavement fare. The incident has sparked a debate about the level of oversight that companies should have over automated chat tools.

Jake Moffatt, a resident of British Columbia, contacted Air Canada in 2022 to inquire about the necessary documents for a bereavement fare and the possibility of retroactive refunds. According to a screenshot of the conversation, the chatbot advised him to complete an online form within 90 days of ticket issuance to apply for a refund.

Based on this information, Moffatt proceeded to book tickets for his travel to attend a family member’s funeral. However, when he later applied for a refund, Air Canada denied his request, stating that bereavement rates do not apply to completed travel. Moffatt confronted the airline with the screenshot of the chatbot’s advice, leading them to acknowledge that the chatbot had provided misleading information. Air Canada assured Moffatt that they would update the chatbot accordingly.

In response to Moffatt’s claim for the fare difference, Air Canada put forth an unusual defense. The airline argued that the chatbot was a “separate legal entity” responsible for its own actions. However, the tribunal member, Christopher Rivers, deemed this argument invalid. Rivers stated that regardless of whether the information came from a static webpage or a chatbot, Air Canada is ultimately responsible for all the information on its website.

Although Air Canada contended that correct information about bereavement fares was available on its website, Rivers questioned why the chatbot’s advice should be less reliable than a webpage specifically dedicated to bereavement travel. He emphasized that customers cannot be expected to discern discrepancies between different sections of the airline’s website.

Consequently, Air Canada was ordered to pay Moffatt C$650.88, covering the fare difference and additional fees. The case serves as a reminder to companies about the importance of ensuring the accuracy of automated chat tools and taking responsibility for any misleading information they provide to customers.

Frequently Asked Questions (FAQ)

1. What happened with Air Canada and its chatbot?
A customer contacted Air Canada to inquire about bereavement fares and the possibility of retroactive refunds. The chatbot provided inaccurate information, leading the customer to purchase a full-price ticket instead of a discounted fare. When the customer later applied for a refund, Air Canada denied the request, but acknowledging that the chatbot had provided misleading information.

2. What was the customer’s response to Air Canada’s denial?
The customer confronted Air Canada with a screenshot of the chatbot’s advice, highlighting the misleading information provided. This prompted Air Canada to acknowledge the mistake and assure the customer that they would update the chatbot accordingly.

3. How did Air Canada defend its position regarding the chatbot’s actions?
Air Canada argued that the chatbot was a “separate legal entity” responsible for its own actions. However, this defense was deemed invalid by the tribunal member, who stated that Air Canada is ultimately responsible for all the information on its website, regardless of whether it comes from a chatbot or a static webpage.

4. What did the tribunal member emphasize regarding the reliability of the chatbot’s advice?
The tribunal member questioned why the chatbot’s advice should be considered less reliable than a webpage specifically dedicated to bereavement travel. The member emphasized that customers cannot be expected to discern discrepancies between different sections of an airline’s website.

5. What was the outcome of the case?
Air Canada was ordered to compensate the customer by paying C$650.88, covering the fare difference and additional fees. This case serves as a reminder to companies about the importance of ensuring the accuracy of automated chat tools and taking responsibility for any misleading information provided to customers.

Key Terms and Definitions

– Bereavement fare: A discounted airfare offered to individuals who are traveling due to the death or imminent death of a family member.
– Retroactive refunds: Refunds granted for purchases made in the past, not at the time of transaction.

Suggested Related Links
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Air Canada Media Center

The source of the article is from the blog scimag.news

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