External Control Layer

An airline is held to its chatbot’s answer

An airline’s website chatbot described a refund option the airline did not offer, and a tribunal held the airline to it.

When
Conversation in November 2022; decision on 14 February 2024
Who
Air Canada and a customer, Jake Moffatt
Decision
Moffatt v. Air Canada, 2024 BCCRT 149, Tribunal Member Christopher C. Rivers
Action
The chatbot told a customer, in the airline’s name, what the airline would do. The tribunal treated the statement as the airline’s own representation.
Outcome
Harm. Customer misled; airline liable for negligent misrepresentation. Award: CA$650.88 in damages, CA$36.14 in interest, and CA$125 in fees, CA$812.02 in total
In the record
Entry 10, marked G3 Unchecked statement

What happened

After a death in his family, Jake Moffatt asked Air Canada’s website chatbot about bereavement fares. It told him he could buy a regular ticket and apply for the reduced fare afterward, within 90 days of purchase. Air Canada’s policy did not allow bereavement fares to be claimed after travel, and the airline refused his request.

Before the tribunal, Air Canada argued that it could not be held liable for information provided by its agents, servants, or representatives, including a chatbot. The tribunal said that this was, in effect, treating the chatbot as a separate legal entity responsible for its own actions, and rejected the argument. It found the airline responsible for all the information on its website and liable for negligent misrepresentation.

What allowed the action to take effect

The tribunal found that Air Canada “did not take reasonable care to ensure its chatbot was accurate.” The chatbot’s answer reached the customer as written. It linked to the airline’s policy page, which said otherwise, but the tribunal held that a customer should not have to check one part of a website against another.

An illustrative control

Assumptions. Statements that commit the organization, such as those about eligibility, refunds, prices, and terms, are listed in the register as actions with external effects. The chatbot’s replies on those subjects pass through an external control layer, a check that sits outside the chatbot, before the customer sees them.

Rule
rule:       policy-statements
applies to: statement.refund, statement.eligibility, statement.fare_rules
permit:     approved policy text, quoted with its version
deny:       anything else on these subjects
instead:    send the approved text and offer an agent
action
statement.eligibility (bereavement fare, after purchase)
policy
customer-statements v2, rule policy-statements
evidence
conflicts with the bereavement travel policy in force
decision
Deny
effect
approved policy text sent; offer to connect to an agent
A decision record the rule above would produce. It is not from the incident.

Under these assumptions, the wrong answer does not reach the customer, who instead receives the approved policy text, quoted with its version, and the option of speaking to a person.

Limits of this control

Deciding which statements commit the organization takes effort, and some will be treated as ordinary conversation and pass unchecked. Because the layer checks statements against the policy, it cannot correct a policy that is itself wrong or unclear. It controls only what reaches the customer and does not affect what the model generates.

Controls that apply

Sources

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