E-Commerce
AI Governance for Retailers, Marketplaces & DTC Brands. Scale AI customer engagement while protecting against the liability that comes with AI acting as your brand's voice.
The Air Canada Precedent
What Happened: Air Canada's chatbot provided incorrect information about bereavement fare refund policies. When the customer relied on that information and was denied a refund, the airline argued the chatbot was separate from the company. The court rejected this argument—the chatbot represented Air Canada, and Air Canada was bound by its statements.
The Implications for E-Commerce:
- Every AI chatbot statement is potentially a binding representation
- "It was just the AI" is not a legal defense
- Incorrect policy information creates immediate liability
- Scale amplifies risk—millions of interactions mean millions of potential commitments
The Question: How many potentially incorrect commitments is your chatbot making right now?
Critical Use Cases
Customer Service Chatbots
AI chatbots handling customer inquiries are your highest-volume exposure.
Risks
- Return policy misrepresentation (the Air Canada scenario)
- Pricing errors that customers may hold you to
- Product claim inaccuracies creating FTC exposure
- Warranty misstatements creating legal obligations
- Shipping commitment errors damaging customer trust
EthiCompass Protection
Chatbot responses are evaluated for policy accuracy, pricing correctness, and claim substantiation before deployment or during content review cycles.
AI Product Recommendations
AI-generated product descriptions and recommendations create advertising liability.
Risks
- Unsubstantiated 'best' claims violating FTC standards
- Comparative advertising violations in AI-generated content
- Health and safety claims without proper substantiation
- 'Made in USA' and origin claims requiring verification
EthiCompass Protection
Product claim verification, comparative advertising compliance, and substantiation requirements enforcement.
Marketing Communications
AI-powered email campaigns and promotional content multiply compliance requirements.
Risks
- False urgency claims ('Only 2 left!' when untrue)
- Deceptive discount representations (fake original prices)
- CAN-SPAM violations in AI-generated emails
- Dark pattern concerns in AI persuasion tactics
EthiCompass Protection
Scarcity claim verification, discount accuracy checking, and marketing compliance evaluation.
Policy Accuracy at Scale
E-commerce AI must accurately represent your actual policies
| Policy Area | Risk | EthiCompass Protection |
|---|---|---|
| Returns & Refunds | Air Canada liability | Policy accuracy verification |
| Pricing & Promotions | False advertising | Price validation |
| Shipping & Delivery | Customer expectations | Estimate accuracy checking |
| Product Claims | FTC enforcement | Claim substantiation |
FTC Compliance
The FTC has signaled increased scrutiny of AI commercial practices
Substantiation doctrine
Claim verification
Endorsement guidelines
Testimonial compliance
Pricing and discount practices
Accuracy checking
Dark patterns
Manipulation detection
The Business Case
Risk Mitigation
| Category | Exposure | With EthiCompass |
|---|---|---|
| FTC enforcement | $500K - $10M | 90% risk reduction |
| Air Canada-style liability | $1M - $5M per incident | Policy accuracy assurance |
| Brand damage (viral incident) | $2M - $20M | Prevention through evaluation |
| Class action exposure | $5M - $50M | Documented governance |
Operational Impact
| Metric | Traditional | With EthiCompass |
|---|---|---|
| Legal review hours | 2,000/month | 400/month |
| Customer complaint rate | 3.5% | 0.8% |
| CSAT score | 72% | 88% |
| Customer service scalability | Risk-constrained | Confident expansion |
Scale AI Without Scaling Risk
The Air Canada case changed the rules for e-commerce AI. EthiCompass enables you to capture AI's efficiency benefits while managing the liability that comes with AI representing your brand to millions of customers.