one year on
Air Canada must honor refund policy invented by airline's chatbot
British Columbia tribunal rules the airline cannot disclaim liability for misinformation provided by its AI chatbot, in a case experts say could influence chatbot accountability.
The Civil Resolution Tribunal of British Columbia has ordered Air Canada to honor a refund policy that its own chatbot invented, rejecting the airline’s argument that the chatbot is ‘a separate legal entity that is responsible for its own actions.’
The case began when Jake Moffatt, after his grandmother’s death, visited Air Canada’s website to book a flight and asked the chatbot to explain bereavement rates. The chatbot told him he could book a flight immediately and request a refund within 90 days. In reality, the airline’s policy explicitly forbids retroactive refunds for bereavement travel. When Moffatt tried to claim the refund, Air Canada refused, offering only a $200 coupon.
Tribunal member Christopher Rivers ruled that Moffatt had ‘no reason’ to doubt the chatbot, noting that Air Canada ‘does not explain why customers should have to double-check information found in one part of its website on another part of its website.’ The decision awarded Moffatt a partial refund of $650.88 CAD plus interest and fees. Air Canada has since appeared to disable the chatbot on its website.
Experts say this appears to be the first Canadian case where a company argued it wasn’t liable for its chatbot’s actions. The ruling establishes that companies cannot evade responsibility by blaming AI agents, and that reasonable care must be taken to ensure chatbot accuracy.
Tribunal member called Air Canada's defense 'remarkable' and stated it is 'obvious' the airline is responsible for all information on its website, whether from a static page or a chatbot.
Moffatt pursued the case after the chatbot told him he could request a refund within 90 days, contrary to the actual policy. He was awarded a partial refund and damages.
One year later — open only if you can handle spoilers
The Air Canada chatbot case became a canonical precedent for chatbot liability, cited in subsequent legal discussions about AI accountability. It accelerated corporate efforts to add disclaimers and human oversight to customer-facing chatbots.