In Moffatt v. Air Canada (2024 BCCRT 149), a British Columbia tribunal held Air Canada responsible for wrong refund advice from its own website chatbot and ordered it to pay $812.02. For a small business the lesson is simple: whatever your bot says, you said. Limit what it may answer and tie every answer to a written source.
What happened in Moffatt v. Air Canada?
After a family death, Jake Moffatt asked Air Canada's website chatbot about bereavement fares. The chatbot said he could book at the regular price and apply for the reduced bereavement rate within 90 days of the ticket date. Air Canada's own bereavement page said the policy does not apply to requests made after travel is completed. He relied on the chatbot, paid full fare, and was later refused the reduction.
| Item | What the tribunal decision records |
|---|---|
| Case | Moffatt v. Air Canada, 2024 BCCRT 149, Civil Resolution Tribunal of British Columbia |
| Decision date | February 14, 2024 |
| What the chatbot said | Reduced bereavement fares could be claimed within 90 days of the ticket issue date |
| What the website policy said | The policy does not apply to requests made after travel is completed |
| Fares paid | $794.98 outbound and $845.38 return, $1,630.36 in total |
| Finding | Negligent misrepresentation |
| Damages | $650.88 |
| Interest and tribunal fees | $36.14 pre-judgment interest and $125 in fees |
| Total ordered | $812.02, payable within 14 days |
Checked October 2026 against the published decision. See Sources.
Is a business responsible for what its chatbot says?
In this case, yes. Air Canada argued it could not be held liable for information given by its chatbot. The tribunal called that "a remarkable submission" and noted the chatbot is part of Air Canada's website. It also rejected the idea that the customer should have double-checked the bereavement page, finding no reason the page was more trustworthy than the chatbot.
The tribunal found that Air Canada owed a duty of care, did not take reasonable care to make sure the chatbot was accurate, and that Mr. Moffatt reasonably relied on what it said. That is negligent misrepresentation. Air Canada's $200 coupon offer was not accepted by Mr. Moffatt, and the tribunal did not treat it as a set-off.
What it does not decide. This was a small claims decision about one airline and one customer. It is not legal advice, and it does not tell you how a court would treat your own bot. It does show how a tribunal reasoned when a business tried to blame its own chatbot. If your bot handles refunds, deposits, medical or legal topics, ask a lawyer to review your setup.
What does the ruling mean for a small business with a chatbot or AI receptionist?
Treat the bot like a new staff member speaking for you in writing. The practical points that follow from the decision:
| Risk in the case | Control for your business |
|---|---|
| Bot invented a policy detail | Let the bot answer only from a short written source: your posted policy, price sheet and hours |
| Bot and website disagreed | Keep one source of truth and update the bot the same day you change a policy |
| Customer could not tell which to trust | Link each policy or price answer to the page it came from |
| No one checked the bot's accuracy | Read a sample of transcripts every month and fix wrong answers |
| Money was promised that policy did not allow | Bot never promises refunds, discounts or exceptions; it passes them to a person |
This is where an AI receptionist differs from a free-text chatbot. A receptionist that books, takes messages and transfers urgent calls has a narrow job, so there is less room to invent anything. See AI agents vs chatbots for small business and website chatbot vs contact form. For callers who distrust bots, read do callers hang up on AI receptionists.
How safe is your own chatbot? A 10-point check
This checklist is our own working list, not a legal standard. Tick what is true today. Nothing is sent anywhere; it runs in your browser.
What rules should a business bot follow?
- Narrow job. Hours, booking, directions, quotes requested, message taking. Nothing else.
- Source-bound answers. If the answer is not in the approved text, the bot says so and offers a person.
- No promises. Refunds, prices not on your price page, medical or legal advice and guarantees go to a human.
- Visible hand-off. One clear way to reach a person, and a promised callback time that you keep.
- Review and log. Keep transcripts, read a sample monthly and fix wrong answers.
- Change control. When you change a policy, change the bot the same day.
This is how we scope AI receptionists at AGNT/01: the owner writes the rules and the system only answers from what is approved. For regulated fields see AI for law firms and the PHIPA guide for Ontario clinics. For what AI tools Ontario businesses actually use, see what Ontario small businesses use AI for. Costs are on the published pricing at agntone.ca/#pricing.
Sources
- Moffatt v. Air Canada, 2024 BCCRT 149, Civil Resolution Tribunal (decision text). All figures, dates and quotes above come from this decision. Checked October 2026.
Related: chatbot agencies in Canada and AI receptionist at $50 vs $1,000 a month.
Frequently asked questions
Did Air Canada have to pay because of its chatbot?
Yes. In Moffatt v. Air Canada, 2024 BCCRT 149, the Civil Resolution Tribunal ordered Air Canada to pay a total of $812.02: $650.88 in damages, $36.14 in pre-judgment interest and $125 in tribunal fees.
What did the Air Canada chatbot get wrong?
It told a customer he could claim a reduced bereavement fare within 90 days of the ticket issue date. Air Canada's own bereavement page said the policy does not apply to requests made after travel is completed.
Can a business blame its chatbot for a wrong answer?
The tribunal in this case rejected that argument, calling it a remarkable submission and noting the chatbot is part of the airline's website. This is one small claims decision, not legal advice, so ask a lawyer about your own setup.
Does this apply to an AI receptionist on the phone?
The decision was about a website chatbot, so it does not rule on phone systems. The reasoning, that a business must take reasonable care that its automated tools are accurate, is a sensible standard for any bot that speaks for you.
How do I stop my chatbot giving wrong answers?
Limit it to a short written source, link each answer to that source, never let it promise refunds or exceptions, give a one-step route to a person, and read a sample of transcripts every month.
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