Chatbot misled passengers into buying tickets incorrectly, court ordered Air Canada to compensate!
According to The Guardian, Air Canada's chatbot provided inaccurate information to passengers, causing them to purchase full-price tickets without taking advantage of discounts. The passenger took Air Canada to court, and the court ultimately ordered Air Canada to pay damages.
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According to reports, Jake Moffatt, a man from Canada, purchased an Air Canada ticket to attend his grandmother's funeral in 2022, hoping to obtain bereavement discounts (bereavement rates) provided by the airline.
In 2022, Jack Moffat contacted Air Canada to determine what documentation was required to qualify for a bereavement ticket and whether a retroactive refund would be available.
Moffat said Air Canada's chatbot told him he could apply for the discount after the trip, but another page on the Air Canada website states: "Refunds are not allowed for completed journeys."
When the case went to court, Air Canada asked a judge to dismiss Moffat's claim. The company denies all accusations but has provided no evidence to refute them.
Air Canada later admitted to Moffat that the bot used "misleading words" in its recommendations and would further update the chatbot. But Air Canada believes airlines should not be held responsible for the actions of chatbots. "Air Canada believes that the chatbot is an independent legal entity and is responsible for its own actions."
"While the chatbot has an interactive component, it is still only part of Air Canada's website," Moffat said. "Air Canada is responsible for all information on its website. It makes no difference whether the information comes from a static page or a chatbot." ."
Judge Christopher Rivers, who handled the case, said: "Moffat did not need to know which part of the Air Canada website was accurate."
It is reported that Moffat's flight from Toronto to Vancouver costs about 1,200 Canadian dollars. Air Canada must pay Moffat $650.88, representing the difference between what Moffat paid for his flight and the bereavement discount fare, plus $36.14 in prejudgment interest and $125 in costs.
According to Simpleflying, Air Canada should immediately admit the mistakes made by its chatbot and provide corresponding compensation.
-Air Canada's argument that the chatbot is responsible for its actions does not hold water. The AI-based chatbot feature on the airline's website is primarily designed to assist or even replace the company's human services. As Rivers noted, the chatbot "remains part of the Air Canada website. Air Canada, for its part, is responsible for all information on its website."
-Airlines are often responsible for different areas of service, which are sometimes provided by external entities: baggage handling and catering are two of the areas where passengers complain most about airlines. Outsourcing usually occurs outsourcing services to other companies.
- Air Canada initially offered the passenger a $200 travel credit. Moffat subsequently took the case to court, seeking a partial refund of approximately CAD$880. This may be a substantial sum for the plaintiff, but a pittance for Air Canada. The time, legal fees and negative media attention the case took far outweighed the difference of a few hundred dollars.