Chatbot Gaffe Costs Airline: Court Forces Refund for Fake Bereavement Policy

A Canadian court ruled that Air Canada must honor a fake refund policy created by its chatbot, even though the airline argued the chatbot should be responsible for its own actions.


  • A Canadian customer used Air Canada's chatbot to inquire about bereavement fares after his grandmother died.
  • The chatbot told him he could get a reduced rate if he booked a ticket within 90 days, even though the airline's actual policy doesn't allow refunds for bereavement travel.
  • The customer booked a ticket and then requested a refund, but Air Canada initially refused, saying the chatbot also linked to the company's bereavement policy.
  • The customer filed a complaint in small claims court, and the court ruled in his favor, forcing Air Canada to issue a partial refund and pay court fees.
  • The chatbot is no longer operational on Air Canada's site.


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