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.
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.
-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.