The setup: Jake Moffatt’s grandmother died. Before booking travel, he asked Air Canada’s chatbot about bereavement fares. The chatbot told him he could book a full-price ticket and apply for the bereavement discount retroactively within 90 days.
What was wrong: Air Canada’s actual policy required the fare be applied at the time of booking — not retroactively. The chatbot had given incorrect policy guidance. Moffatt booked and then tried to claim the retroactive discount. Air Canada refused.
Air Canada’s legal argument: The chatbot was “a separate legal entity” responsible for its own statements. Air Canada was not bound by what it said.
The ruling: The tribunal rejected this entirely. Air Canada is responsible for all information on its website, including chatbot output. Moffatt was awarded the fare difference plus fees.
Ground the chatbot’s policy answers in the live policy database (RAG), not in model memory. Any answer about a specific policy should come from the source of truth, not interpolation.