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Air Canada Forced to Give Partial Refund over Misleading Chatbot-Provided Information




Air Canada Forced to Give Partial Refund to Grieving Passenger Misled by Chatbot

Air Canada Forced to Give Partial Refund to Grieving Passenger Misled by Chatbot

Background

After months of resistance, Air Canada has been compelled to provide a partial refund to a grieving passenger who received misleading information from the airline’s chatbot regarding the bereavement travel policy. The incident has raised concerns about the chatbot’s reliability and Air Canada’s accountability in such cases.

The Incident

When Jake Moffatt’s grandmother tragically passed away, he urgently needed to book a flight from Vancouver to Toronto through Air Canada. Lacking clarity about the airline’s bereavement rates, Moffatt sought assistance from the airline’s chatbot to understand the policy.

Misleading Information

Unfortunately, the chatbot provided Moffatt with inaccurate information, advising him to book the flight immediately and request a refund within 90 days. In reality, Air Canada’s policy clearly stated that refunds for bereavement travel would not be provided after the flight was booked. Consequently, Moffatt’s refund request was denied, causing frustration and distress.

Unsatisfactory Resolution

Moffatt pushed for months to convince Air Canada that he was owed a refund, providing a screenshot of the chatbot dialogue that misleadingly stated he could submit a refund application. However, the airline stood by the argument that the chatbot linked to the actual policy and Moffatt should have known that retroactive bereavement rates were not permissible. Air Canada offered a mere $200 coupon for a future flight along with a promise to update the chatbot.

Legal Battle

Unsatisfied with the resolution, Moffatt rejected the coupon and filed a complaint in Canada’s Civil Resolution Tribunal, accusing Air Canada of misrepresentation and seeking a fair refund.

Unique Argument

Air Canada attempted to argue that the chatbot, as a separate legal entity, should be held responsible for its own actions rather than the airline. This defense, termed as “remarkable” by Tribunal member Christopher Rivers, was refuted, as Air Canada failed to provide a substantial explanation of why the website’s information was more trustworthy than the chatbot’s.

Air Canada’s Liability

Experts opined that Moffatt’s case marks the first instance in Canada where a company has tried to shirk accountability for its chatbot’s provided information. Tribunal member Rivers highlighted that Air Canada did not justify the need for customers to double-check information on different parts of its website.

Ruling and Resolution

Tribunal member Rivers ruled in favor of Moffatt, determining that Air Canada should be held liable and ordered a partial refund of $650.88 CAD ($482 USD) on the original fare of $1,640.36 CAD ($1,216 USD). Additional damages were awarded to cover interest on the airfare and Moffatt’s tribunal fees.

Air Canada’s Response

According to Air Canada, they will comply with the ruling and consider the matter closed. Notably, when the Ars team visited Air Canada’s website, the chatbot support appeared to be disabled, raising speculations about the company’s introspection regarding the incident.

Conclusion

This groundbreaking case emphasizes the need for companies to ensure the accuracy of information provided by their automation systems. With chatbots being increasingly relied upon for customer support, this incident serves as a reminder that user trust and satisfaction should remain paramount in the development and deployment of such technology.


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