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A Consequence Record · The Consequence Library

Moffatt v. Air Canada: inaccurate chatbot statement and company liability

A tribunal held Air Canada responsible for inaccurate information provided to a customer by its website chatbot.

The Consequence Library · How records are made and graded

Air Canada's website chatbot told a customer he could apply retroactively for a bereavement fare, which was not the airline's policy. The British Columbia Civil Resolution Tribunal held the airline responsible for the statement and ordered damages.

Date
14 February 2024
Sector
legal-judiciary
System type
generative-ai
Failure stage
action
Consequence
legal-sanction, unauthorized-communication
Severity
S3, significant
Confidence
Event: C1, adjudicated or regulator-grade
AI attribution: C1, adjudicated or regulator-grade
Last verified
16 August 2026

What happened

A customer, planning travel after a death in the family, asked Air Canada's chatbot about bereavement fares and was told he could book at full price and apply for a reduced rate within 90 days. That was inconsistent with the airline's actual policy, which did not allow retroactive application. When the airline refused the refund, the customer brought a claim. In a decision issued on 14 February 2024, the tribunal rejected the airline's argument that the chatbot was a separate legal entity responsible for its own actions, holding that the airline was responsible for all information on its website whether it came from a static page or a chatbot, and awarded damages and fees.

Where control failed

The chatbot delivered information to a customer that was inconsistent with Air Canada's published policy. The record does not identify a validation or review mechanism that corrected the statement before it reached the customer.

The authority question

The tribunal held Air Canada responsible for information supplied through its website chatbot. The case therefore provides a documented example of organisational responsibility for an automated customer-facing statement.

What could be proven afterward

The record is a published tribunal decision, including the screenshot of the chatbot's statement that the customer preserved. That preservation was the customer's doing, not the company's. Had he not kept it, the claim would have turned on recollection of a conversation with a system that keeps no account the other party can reach.

Control state, before and after

Before the consequence

Generated customer-facing statements with no binding to the authoritative policy source, and no gate on statements creating commitments.

After the consequence

Tribunal decision holding the company responsible for its chatbot's statements, widely cited since as authority on the point.

Sources

Record history

Published 16 August 2026. Load-bearing facts re-verified against the cited sources on 16 August 2026. Corrections and material changes are appended here with their dates. To report an error in this record, write to hello@regulayer.com with the record slug and the source you believe is authoritative.

This record describes what sources establish about a consequence and the control state around it. It separates confirmed fact from source-stated cause and from architectural analysis, and it makes no claim that any control or product would have prevented the outcome. Gap codes identify a failure class, not a remedy.