Here’s an interesting story of an airline being held responsible for misinformation that it provided to a customer.
Continue reading: Air Canada Held Liable For Chatbot Misinformation
Share your questions, experiences, and thoughts below.
I too find it crazy that Air Canada claims they aren't responsible for bad information provided by their own employees. Would that hold up in court?
Canadian here: Couple things.
1. This was small claims court, so precedent is not set, despite most news stories suggesting that it is.
2. It's truly sad how bad Canada's enforcement mechanisms are for this type of things. Canada adopted an EC261 style legislation, but getting airlines to pay up requires so many hoops that you need to go to small claims. It's all BS and I wish our government sanctioned airlines beyond a slap on the wrist.
I wish more and more passengers place lawsuits against Air Canada and Aeroplan
Tells you everything you need to know about this rotten company
If it wasn't for subsidies, bailouts and "loans" we would've been rid of this scum years ago
From a more practical perspective, did he get reimbursed for the legal fees that he had to incur? If not, I would say it was a fairly costly move to get $800 back…
It’s good that airlines and other companies are held liable for detrimental reliance. Agent representations upon which customers rely should be legally actionable when the customer has faced economic harm because of the sellers’ misrepresentations made in the lead up to and/or during a sale or contract engagement. And fine print in a contract of adhesion shouldn’t be considered to override verbal representations made by agents — be those agents actual humans or chatbot programs used to “inform” customers looking at and making purchases.
I read about this incident earlier this am before I saw Ben's post and my first reaction was: So what All of us have received confusing, misleading, or just plain wrong information from airline customer support -- human or otherwise. Caveat Emptor
About 10 years ago I had to make last minute changes in travel on AC because of a family emergency. Interestingly their policy at that time was pay the regular published fare and submit a bereavement request after the flight was complete. I did that and received partial reimbursement.
What gets me is that it cost AC far more than $800 to fight this claim. Airlines are notorious for being penny wise-dollar foolish. And what does it get them? Had they just quietly paid the claim it likely never would have been made public, with the resulting negative publicity.
In Canada, it is more common for the winner to recover legal fees. It is not common in the U.S. In fact, it's sometimes called the "American Rule". One exception is some federal court employment discrimination lawsuits under section 1983 can result in a losing employer paying both sides legal fees.
AC and LH must use the same law firm, Schadenfreude & Sons. What a defense! the “chatbot” did it!
And it also left a precedent. Now, there is a ruling. Any misinformation from their agent now makes them liable since you can now point out this ruling.
if there's one thing we know about Air Canada, it's that they have some sort of kink for negative publicity
Couldn't have put it better myself.
Those that don't have the curse of being limited to this carrier wouldn't understand, and I pray your experiences with AC are short and to the point.
What an atrocious company through and through--from the ground experience, to the soft product, to their rug-pull of an reward program.
I think it's just a matter of fact at this point; when you're so rubbish across so many fronts, and do not put any effort to right any wrongs or shortcomings due to you being the main option for a lot of people, you become complacent and all the terrible aspects of the way you do things just naturally bring negative publicity.
A bad company will sooner or later be known as a bad company.
Air Canada is a bad company
Ben, A few more notes to clarify.
Sort of an online small claims in BC
No judge, only a designated tribunal member
a. $650.88 in damages,
b. $36.14 in pre-judgment interest under the Court Order Interest Act, and
c. $125 in CRT fees.
Points geek. #PTGeek - novel and good for your brand.
Whatever.
Just stop calling yourself an #AVGEEK.
The system (CRT) the traveller used is akin to small claims court. There's a minor filing fee (I think $150 or so), which the traveller was reimbursed by Air Canada after winning the judgement.
No legal assistance is required for the CRT, you just need to write a clear description of your events and what you're seeking, plus attach any evidence you might have. It's not intended to be onerous or require much assistance, but rather designed for the average person to use.
AC isn't responsible for anything. Bad decision making? It's just a rogue C-suite executive. Bad contract and puts them at a bad position? Just say the lawyers are responsible for it, not AC.
What a ridiculous claim.
He did, it's a small claims court filing. He presents himself and the court does not require any legal language or representation. $150 of the $800 covers the filing costs.
It is not precedent for any higher courts in B.C., of which the CRT is the lowest. However it is unlikely this matter gets taken up by any other court level, and I think the analysis is persuasive for any other decisions in other jurisdictions. I would guess a disclaimer would be added to the chatbot if it still exists.
Had they won, it would allow them to do whatever with immunity. It was a huge gamble with a huge possible payout for the company long term. However, they didn't win so it was a huge loss. It's also doubtful this cost them much as you'd expect because I assume their legal team is more than likely calculated into their run rate and not a power by hour type of agreement.
If your chatbot isn't reponsible for giving accurate information, why even have a Chatbot to begin with? Ironically if the Chatbot didn't exist it would probably give customers better answers as they search through the Q&A page to find things they're looking for.
Shouldn't the court refunded the entire price of the ticket because the passenger had to go to trouble of suing the airline? I am not looking for a crazy award amount.
"Air Canada’s defense was to distance itself from the chatbot’s bad advice, by claiming that the tool was “a separate legal entity that is responsible for its own actions.” "
That has to be the most ridiculous claim an airline has made in a long time. Wonder if the judge laughed out loud?
Worst airline with terrible customer service. I am not sure how much more it would take for this airline to be closed forever. They never assume any responsibility on anything.
Surprised AC didnt settle. The lawyer's fee has to be greater than the $812 CAD. I am guessing he sued in small claims court, otherwise his lawyer fee would consume his damages. I thought that the US was litigious and not Canada.
Wow, just read the blog about Air Canada being held liable for chatbot misinformation. It's a wake-up call for companies relying on AI-driven customer service! This highlights the importance of accuracy and accountability in automated systems
It's about time airlines are held accountable, too bad that never happens in the US.
Airline employees in the US suffer no consequences for lying because the DOT is the only one that has all the power after deregulation and it does not intervene when customers are lied to, and airline management only responds to monetary costs/fines otherwise they're quite with not supervising their employees.
I love the fact they basically 'sacked' the chatbot and got rid of it completely after this
This is the most vile corporation in Canada. Settling means admitting wrong. That's not the AC way. They will lie and spend money on lawyers instead of doing the right thing.
Honestly, it is also AC. Sometimes, we up north feel the company considers passengers as its number one enemy.
A bit less attitude, a bit less legalese (I mean, really, a "separate legal entity", who dreamt that stuff up) and a little bit more common sense and service.
AC refusing to refund during Covid, refusing to refund because their chatbot gave wrong info. I mean, I really feel like I shouldn't risk flying AC with paid tickets, or even with points. It feels like a lottery.
Since their chatbot is a separate entity, I sure hope Air Canada is paying it the minimum wage and also paying the CRP the bot's CPP, EI, and worker's comp payroll taxes. Does it have a SIN?