After months of resisting, Air Canada was forced to give a partial refund to a grieving passenger who was misled by an airline chatbot inaccurately explaining the airline’s bereavement travel policy.
On the day Jake Moffatt’s grandmother died, Moffat immediately visited Air Canada’s website to book a flight from Vancouver to Toronto. Unsure of how Air Canada’s bereavement rates worked, Moffatt asked Air Canada’s chatbot to explain.
The chatbot provided inaccurate information, encouraging Moffatt to book a flight immediately and then request a refund within 90 days. In reality, Air Canada’s policy explicitly stated that the airline will not provide refunds for bereavement travel after the flight is booked. Moffatt dutifully attempted to follow the chatbot’s advice and request a refund but was shocked that the request was rejected.
Moffatt tried for months to convince Air Canada that a refund was owed, sharing a screenshot from the chatbot that clearly claimed:
If you need to travel immediately or have already travelled and would like to submit your ticket for a reduced bereavement rate, kindly do so within 90 days of the date your ticket was issued by completing our Ticket Refund Application form.
Air Canada argued that because the chatbot response elsewhere linked to a page with the actual bereavement travel policy, Moffatt should have known bereavement rates could not be requested retroactively. Instead of a refund, the best Air Canada would do was to promise to update the chatbot and offer Moffatt a $200 coupon to use on a future flight.
Unhappy with this resolution, Moffatt refused the coupon and filed a small claims complaint in Canada’s Civil Resolution Tribunal.
According to Air Canada, Moffatt never should have trusted the chatbot and the airline should not be liable for the chatbot’s misleading information because Air Canada essentially argued that “the chatbot is a separate legal entity that is responsible for its own actions,” a court order said.
Experts told the Vancouver Sun that Moffatt’s case appeared to be the first time a Canadian company tried to argue that it wasn’t liable for information provided by its chatbot.
Tribunal member Christopher Rivers, who decided the case in favor of Moffatt, called Air Canada’s defense “remarkable.”
“Air Canada argues it cannot be held liable for information provided by one of its agents, servants, or representatives—including a chatbot,” Rivers wrote. “It does not explain why it believes that is the case” or “why the webpage titled ‘Bereavement travel’ was inherently more trustworthy than its chatbot.”
Further, Rivers found that Moffatt had “no reason” to believe that one part of Air Canada’s website would be accurate and another would not.
Air Canada “does not explain why customers should have to double-check information found in one part of its website on another part of its website,” Rivers wrote.
In the end, Rivers ruled that Moffatt was entitled to a partial refund of $650.88 in Canadian dollars (CAD) off the original fare (about $482 USD), which was $1,640.36 CAD (about $1,216 USD), as well as additional damages to cover interest on the airfare and Moffatt’s tribunal fees.
Air Canada told Ars it will comply with the ruling and considers the matter closed.
Air Canada’s chatbot appears to be disabled
When Ars visited Air Canada’s website on Friday, there appeared to be no chatbot support available, suggesting that Air Canada has disabled the chatbot.
Air Canada did not respond to Ars’ request to confirm whether the chatbot is still part of the airline’s online support offerings.
Last March, Air Canada’s chief information officer Mel Crocker told the Globe and Mail that the airline had launched the chatbot as an AI “experiment.”
Initially, the chatbot was used to lighten the load on Air Canada’s call center when flights experienced unexpected delays or cancellations.
“So in the case of a snowstorm, if you have not been issued your new boarding pass yet and you just want to confirm if you have a seat available on another flight, that’s the sort of thing we can easily handle with AI,” Crocker told the Globe and Mail.
Over time, Crocker said, Air Canada hoped the chatbot would “gain the ability to resolve even more complex customer service issues,” with the airline’s ultimate goal to automate every service that did not require a “human touch.”
If Air Canada can use “technology to solve something that can be automated, we will do that,” Crocker said.
Air Canada was seemingly so invested in experimenting with AI that Crocker told the Globe and Mail that “Air Canada’s initial investment in customer service AI technology was much higher than the cost of continuing to pay workers to handle simple queries.” It was worth it, Crocker said, because “the airline believes investing in automation and machine learning technology will lower its expenses” and “fundamentally” create “a better customer experience.”
It’s now clear that for at least one person, the chatbot created a more frustrating customer experience.
Experts told the Vancouver Sun that Air Canada may have succeeded in avoiding liability in Moffatt’s case if its chatbot had warned customers that the information that the chatbot provided may not be accurate.
Because Air Canada seemingly failed to take that step, Rivers ruled that “Air Canada did not take reasonable care to ensure its chatbot was accurate.”
“It should be obvious to Air Canada that it is responsible for all the information on its website,” Rivers wrote. “It makes no difference whether the information comes from a static page or a chatbot.”
HALIFAX – Ottawa is negotiating a $500-million bailout for Nova Scotia’s privately owned electric utility, saying the money will be used to prevent a big spike in electricity rates.
Federal Natural Resources Minister Jonathan Wilkinson made the announcement today in Halifax, saying Nova Scotia Power Inc. needs the money to cover higher costs resulting from the delayed delivery of electricity from the Muskrat Falls hydroelectric plant in Labrador.
Wilkinson says that without the money, the subsidiary of Emera Inc. would have had to increase rates by 19 per cent over “the short term.”
Nova Scotia Power CEO Peter Gregg says the deal, once approved by the province’s energy regulator, will keep rate increases limited “to be around the rate of inflation,” as costs are spread over a number of years.
The utility helped pay for construction of an underwater transmission link between Newfoundland and Nova Scotia, but the Muskrat Falls project has not been consistent in delivering electricity over the past five years.
Those delays forced Nova Scotia Power to spend more on generating its own electricity.
This report by The Canadian Press was first published Sept. 16, 2024.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
