Treadstone Associates
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Can a chatbot's answer bind my business?

Generally yes. Canadian misleading-representation law looks at what was said to the public, not what technology said it, and a chatbot script counts.

Treadstone Associates · Updated 2026

Short answer

Generally yes, in the same way a statement from an employee or a page on your own website can bind you — the law asks what representation was made to the public, not what technology produced it. The Competition Act's misleading-representation rules apply to a business “by any means whatever,” and a chatbot script is one of those means.

The legal question is about the representation, not the tool

The federal Competition Act frames the rule around the representation itself: a person engages in reviewable conduct who, for the purpose of promoting a product or business interest, “by any means whatever… makes a representation to the public that is false or misleading in a material respect.” (Competition Act, s.74.01(1)(a)) Nothing in that wording turns on whether a human, a webpage or a chatbot made the statement — the Competition Bureau's own discussion of AI and marketing makes the same point about scale rather than novelty: AI “eases the ability to scale” deceptive conduct, such as automating phone calls or other communications, rather than creating a new category of it. (Competition Bureau, Artificial intelligence and competition, discussion paper)

What actually limits your exposure

A well-drafted limitation-of-liability clause in your online terms of service caps what you owe if something goes wrong, provided it's clearly written and brought to the user's attention before they agreed — but courts won't enforce a clause that tries to contract out of statutory consumer protections, so a cap can't undo a false representation the Competition Act already treats as reviewable. (Treadstone Law, Terms of Service for Ontario Online Businesses)

In practice

Route anything a chatbot might say that reads as a binding offer — a price, a refund, a guarantee — through human review or an explicit escalation path, rather than letting the script freelance on it. The same reasoning applies on the other side of the counter: see who's responsible when AI-written copy overstates what your product does and whether an ad needs to disclose that AI wrote it.

Not sure what your customer-facing AI tool is actually authorized to say?

See how accountability for an AI system's output actually gets assigned and reviewed.