BC Tribunal Finds Air Canada Liable For Inaccurate Advice Given By Website Chatbot

On February 14, 2024, the British Columbia Civil Resolution Tribunal (the Tribunal) issued its decision in Moffatt v Air Canada, 2024 BCCRT 149, finding Air Canada liable for damages after failing to take reasonable care to ensure the accuracy of its website chatbot.

In November 2022, Jake Moffatt (the Applicant) interacted with an automated chatbot while using Air Canada’s website in inquiring about bereavement fares.  The chatbot suggested that the Applicant could, after travel has been completed, retroactively apply the bereavement fare rate to his regularly priced airline ticket and provided a hyperlink to a separate Air Canada webpage with additional information about Air Canada’s bereavement policy.  Contrary to the chatbot’s advice, the hyperlinked webpage indicated that Air Canada’s bereavement policy does not apply to requests for bereavement consideration after travel has been completed. This resulted in Air Canada later rejecting the Applicant’s request for a bereavement fare and, in response, the Applicant brought the dispute to the Tribunal, claiming that they relied on the chatbot and were owed a partial refund for the difference between the regular and bereavement fares.  

The Tribunal rejected Air Canada’s argument that it cannot be held liable for information provided by a chatbot, and clarified that Air Canada remains responsible for all the information on its website, despite whether the information comes from a static page or a chatbot. Additionally, the Tribunal was not persuaded with Air Canada’s argument that the Applicant could have found the correct information on another part of its website, noting that Air Canada failed to explain why the hyperlinked webpage was inherently more trustworthy than its chatbot, or why customers should be required to double-check information found in one part of its website on another part of its website.

The Applicant alleged the tort of negligent misrepresentation. The Tribunal agreed and found that the parties’ commercial relationship as a service provider and consumer meant that Air Canada owed the Applicant a duty of care. Further, the Tribunal found that Air Canada did not take reasonable care to ensure its chatbot was accurate and, in reasonably relying on the chatbot, the Applicant suffered damages as a result.

Ultimately, the Tribunal concluded that Air Canada negligently misrepresented the procedure for claiming bereavement fares and ordered Air Canada to pay the Applicant a total of $812.02 in damages, pre-judgment interest, and fees.

Summary By: Steffi Tran