Scenario Library / Hallucination liability
Hallucination liability

Airline held liable for its chatbot's invented refund policy

A passenger relied on Air Canada's website chatbot, which gave incorrect advice about bereavement fares, and was later denied the refund. The BC Civil Resolution Tribunal rejected the airline's argument that the chatbot was a separate entity, found negligent misrepresentation and ordered a partial refund plus fees.

2024 Verified in a source

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This is an educational research summary built from public information. Allegations in pending cases are unproven, and the insurance notes above are for discussion, not coverage advice. Whether any policy responds depends on its specific wording, exclusions, endorsements, the facts, and applicable law.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994