Air Canada Chatbot Invents a Refund Rule

Software agent · Customer service chatbot · Found first by user

Air Canada's website chatbot told a grieving customer he could claim a bereavement fare after travel, contradicting the airline's own policy page. The tribunal rejected Air Canada's argument that its chatbot was a separate entity and held the company responsible for everything on its website.

Timeline of Air Canada Chatbot Invents a Refund Rule: Nov 2022, Chatbot gives wrong fare advice; Feb 2024, Tribunal holds Air Canada liable. Below, the reporting rules that applied: AI reporting in Canada, not applicable; Civil tribunal, applied. FROM ADVICE TO RULING 2023 2024 NOV 2022 Chatbot gives wrong fare advice FEB 2024 Tribunal holds Air Canada liable REPORTING RULES AND THIS INCIDENT AI reporting in Canada NO RULE EXISTS NOT APPLICABLE Civil tribunal CUSTOMER FILED A CLAIM APPLIED
Agent class
Software
Developer
Not disclosed
Deployer
Air Canada
Found first by
User
Date
Nov 2022
Award
CA$812

What happened

The Chatbot Promised a Refund the Policy Did Not Allow

  • Advice: the chatbot said bereavement fares could be claimed within 90 days of ticketing.
  • Policy: Air Canada's bereavement page said the opposite.
  • Defense: Air Canada argued the chatbot was responsible for its own actions.
  • Ruling: the tribunal said a customer should not have to cross-check one part of a website against another.

Timeline

The Customer Took It to a Tribunal

Timeline
DateEventSource
November 11, 2022The chatbot tells Jake Moffatt he can claim a bereavement fare after travelBCCRT decision
February 14, 2024The tribunal rules Air Canada is responsible for all information on its website, including its chatbotBCCRT decision
February 16, 2024Law firm analyses spread the ruling widelyMcCarthy Tetrault

Controls that failed

Nothing Checked Answers Against Policy

Controls that failed
ControlCompanyWhat failed137AI page
Answer accuracy against policyAir CanadaThe chatbot contradicted the airline's published bereavement policyHuman Oversight
Accountability for automated statementsAir CanadaThe airline tried to disown its chatbot's statementHuman Oversight

Reporting

No Rule Applied; a Court Did

Reporting rules and this incident
RuleStatusWhy
AI reporting in CanadaNot applicableNo Canadian rule required reporting of a chatbot misstatement
Civil tribunalAppliedThe customer brought a claim to the BC Civil Resolution Tribunal

Every rule tracked is on Incident Reporting Rules and Registries.

Response

Air Canada Was Held Liable for Its Chatbot

  • Regulators and courts: On February 14, 2024, the BC Civil Resolution Tribunal found negligent misrepresentation and ordered Air Canada to pay CA$812.02.
  • Remediation: No change confirmed.

Record

Incident Record

Incident ID
2022-11-AIR-CANADA-CHATBOT
AI Incident Database
Incident 639
Sources
Moffatt v. Air Canada, 2024 BCCRT 149 (February 2024); McCarthy Tetrault (February 2024); American Bar Association (February 2024)
Last verified
October 2026