Air Canada

Passenger Jake Moffatt's grandmother died. He asked Air Canada's chatbot about bereavement fares. The chatbot hallucinated a policy: book now, request a refund within 90 days. He followed those instructions. Air Canada denied the refund, citing its actual policy. In court, Air Canada argued the chatbot was "a separate legal entity responsible for its own actions." The tribunal called this defense "remarkable" and ordered Air Canada to pay $650.88 CAD plus fees and interest.