Air Canada Loses in Court After Chatbot Invents Its Own Policy
Air Canada deployed a chatbot to handle customer service inquiries, including questions about bereavement fares. It invented a retroactive discount policy that did not exist; a tribunal ordered payment of CAD $812.02 and ruled that companies cannot disclaim liability for chatbot outputs. Air Canada argued it was not responsible for its own chatbot's statements, which is the kind of legal theory that works until it doesn't.
Severity: Unrated · Category: Excessive Agency
Impact: CAD $812.02 · Binding AI liability precedent
Source: Moffatt v. Air Canada, 2024 BCCRT 149
How Fencio prevents this
The agent held far more permission than the task needed, and nothing between intent and execution asked whether an action was proportionate. It reached for the most powerful option available, and the system let it.
Fencio enforces least privilege at runtime. Each agent action is checked against the scope of the task it was given, destructive or out-of-scope operations are held for human approval, and network targets are pinned to an allowlist so an agent cannot wander into systems it was never meant to touch.