In a recent incident, Air Canada was required to back a discount promised by its chatbot to a customer under unfortunate circumstances. An airline’s chatbot had offered a bereavement fare discount to a customer who needed to travel due to the death of an immediate family member. Bereavement fares are special discounted rates that some airlines provide for customers who must travel urgently due to the death or imminent death of a close relative.
Jake M. from Canada experienced a family loss and was traveling roundtrip from Vancouver to Toronto. He was offered a retroactive discount on his bereavement fare by the Air Canada chatbot. The chatbot instructed Jake M. on how to apply for the discount, and he took a screenshot of this promise for reference. However, when Jake M. tried to redeem the discount, Air Canada refused, stating that it was not aligned with their official policy, despite admitting their chatbot had erred in offering it.
The matter was taken up with the Civil Resolution Tribunal (CRT), which found Air Canada’s stance puzzling and determined that the airline was indeed in the wrong for not honoring the discount. The tribunal clearly indicated that the chatbot is not a separate legal entity as the airline had claimed, but an extension of the airline’s own customer service apparatus.
The tribunal’s decision was that Air Canada should be responsible for the information dispensed by its chatbot on the company website, regardless of whether the information was from a static webpage or an interactive chatbot service.
As a result of the Tribunal’s ruling, Air Canada was directed to pay Jake M. over C$800, which corresponded to the bereavement fare discount he was initially promised by the chatbot. This case has highlighted the importance of accuracy in automatic customer service responses and the legal responsibility companies have for the information provided by such automated systems.
The outcome underscores a growing conversation around customer service automation and the potential issues that can arise when technology provides incorrect information. Air Canada’s experience is also a reminder to travelers to document interactions with customer service, including those with automated systems, in case of discrepancies or disputes that later need to be resolved.
