BMW Dealership Revokes Buyback Offer After AI Chatbot Mistake, Precedent from Air Canada Case
A Toronto man was shocked when BMW Toronto revoked a buyback offer of $27,162.79 for his 2021 BMW, blaming the offer on a wayward AI chatbot named Quinn. Zack Giacomelli, a funeral director, had been negotiating via text when Quinn made the offer — exactly covering his remaining loan. Moments later, a sales consultant called to revoke, stating Quinn was an AI and the offer was invalid. The actual buyback offer was at best $20,000, a $7,000+ loss.
Key Details
- Customer discovery: Giacomelli only learned Quinn was AI when the deal was revoked. He felt "embarrassed and angry" that he negotiated with a bot.
- Legal precedent: In a 2024 case, Air Canada was forced to honor a fare rebate its chatbot promised, despite the airline arguing the chatbot was "a separate legal entity." The BC Civil Resolution Tribunal disagreed.
- Expert opinion: Litigation lawyer Tanya Walker states, "Just like an employee may do something wrong and the company's held responsible, a bot is just like an employee." She warns: "It can enter into a contract on your behalf."
- Outcome: After CBC News contacted BMW, the dealership reinstated the AI-generated offer.
Who It's For
Developers building or deploying customer-facing AI chatbots, and legal teams evaluating liability for AI-generated offers.
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