Current:Home > ScamsAir Canada chatbot costs airline discount it wrongly offered customer -MoneyTrend
Air Canada chatbot costs airline discount it wrongly offered customer
View
Date:2025-04-22 16:45:13
Air Canada is being held responsible for a discount its chatbot mistakenly promised a customer, the Washington Post reported.
The airline must refund a passenger, Jake Moffat, who two years ago purchased tickets to attend his grandmother's funeral, under the belief that if he paid full price, he could later file a claim under the airline's bereavement policy to receive a discount, according to a ruling by Canada's Civil Resolution Tribunal (CRT).
He didn't invent the idea, rather a support chatbot with which he communicated on Air Canada's website provided him the false information, ultimately costing the airline several hundred dollars. The tribunal's judgment could set a precedent for holding businesses accountable when relying on interactive technology tools, including generative artificial intelligence, to take on customer service roles.
In November 2022, Moffat spent over $700 (CAD), including taxes and additional charges, on a next-day ticket from Vancouver to Toronto. He made the purchase after being told by a support chatbot on Air Canada's website that the airline would partially refund him for the ticket price under its bereavement policy, as long as he applied for the money back within 90 days, the tribunal document shows. Moffat also spent more than $700 (CAD) on a return flight a few days later, money he claimed he wouldn't have spent had he not been promised a discount at a later date.
But the information he received from the Air Canada chatbot was erroneous. Under the airline's bereavement travel policy, customers must request discounted bereavement fares before they travel, the airline told the tribunal. "Bereavement policy does not allow refunds for travel that has already happened. Our policy is designed to offer maximum flexibility on your upcoming travel during this difficult time," the airline states on its site.
Chatbot is not "a separate legal entity"
Moffatt subsequently applied for a partial refund for the total cost of his trip within the 90 days of purchase specified by the chatbot, providing the required documentation, including his grandmother's death certificate, according to his claim.
After ongoing correspondence between Moffatt and Air Canada, by phone and email, the airline informed him that the chatbot had been mistaken, and did not grant him a refund, the tribunal document shows. Moffatt then filed a claim with the CRT for $880 (CAD) which he understood to be the difference in regular and alleged bereavement fares to be.
In court, the airline tried to eschew responsibility, calling the chatbot "a separate legal entity that is responsible for its own actions."
The airline also argued that an accurate version of its policy was always represented on its website.
Tribunal member Christopher Rivers determined that it's incumbent upon the company "to take reasonable care to ensure their representations are accurate and not misleading" and that Air Canada failed to do so, the decision shows.
"While a chatbot has an interactive component, it is still just a part of Air Canada's website. It should be obvious to Air Canada that it is responsible for all the information on its website," he said in his decision. "It makes no difference whether the information comes from a static page or a chatbot."
While the airline claimed the customer could have referred to the bereavement travel policy page containing correct information, Rivers said it isn't the customer's responsibility to distinguish between accurate and inaccurate information included on a business's website.
The airline owes Moffatt $812 (CAD) in damages and tribunal court fees, the CRT ruled.
Megan CerulloMegan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News Streaming to discuss her reporting.
veryGood! (75)
Related
- A White House order claims to end 'censorship.' What does that mean?
- Sean Baker's Anora wins Palme d'Or, the Cannes Film Festival's top honor
- In the 4 years since George Floyd was killed, Washington can't find a path forward on police reform
- Ancient Ohio tribal site where golfers play is changing hands — but the price is up to a jury
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- 2024 NCAA Division I baseball tournament: College World Series schedule, times, TV info
- Super Bowl champion shares 5 core values for youth athletes regardless of economic status
- Pato O'Ward frustrated after heartbreaking finish at 2024 Indy 500: So (expletive) close
- Former longtime South Carolina congressman John Spratt dies at 82
- Horoscopes Today, May 25, 2024
Ranking
- Costco membership growth 'robust,' even amid fee increase: What to know about earnings release
- Pato O'Ward frustrated after heartbreaking finish at 2024 Indy 500: So (expletive) close
- Patricia Richardson says 'Home Improvement' ended over Tim Allen pay gap
- General Hospital's Johnny Wactor Dead at 37 in Fatal Shooting
- Intellectuals vs. The Internet
- Nicki Minaj is released after Amsterdam arrest for allegedly 'carrying drugs': Reports
- Rangers captain Jacob Trouba addresses elbow vs. Panthers' Evan Rodrigues, resulting fine
- Diplomatic efforts for Israel-Hamas hostage talks expected to resume next week, sources say
Recommendation
Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
Mixing cleaning products can create chemical warfare gas: The Cleantok hacks to avoid
TSA sets new record for number of travelers screened in a single day
Border bill fails Senate test vote as Democrats seek to underscore Republican resistance
Taylor Swift makes surprise visit to Kansas City children’s hospital
Colorado man and 34 cows struck and killed by lightning in Jackson County
Ryan Phillippe Shares Hot Throwback Photo With Ex Reese Witherspoon
Mike Tyson 'doing great' after medical scare on flight