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03Legal LiabilityAir Canada

The agent made a promise the company had to keep.

2024

The incident

Jake Moffatt asked Air Canada’s chatbot about bereavement fares after his grandmother died. The chatbot told him he could claim a discounted fare retroactively within 90 days of travel. He booked full-price tickets and submitted the claim. Air Canada refused — the retroactive policy did not exist. The BC Civil Resolution Tribunal ruled against Air Canada. In court, Air Canada argued the chatbot was a separate legal entity responsible for its own actions. The tribunal called this a remarkable submission. Damages: $812 CAD.

An agent can produce output that is reasonable, helpful, and legally binding — and the organisation deploying it is responsible for all of it.

How Sunbeam helps

CIM’s REQUIRE_APPROVAL gate holds agent responses that reference refunds, eligibility, or policy commitments for human review before delivery.

Source: BC Civil Resolution Tribunal, February 2024.

Relevant regulations
Consumer Rights Act
EU AI Act Article 13
FCA Consumer Duty
Related use case
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