AI-powered chatbots are quickly becoming standard tools for
customer interaction. But what happens when such systems generate
inaccurate or plainly false information? In a recent
decision,
the Higher Regional Court of Hamm tackled precisely this question in
the context of misleading advertising (case no. 4 UKl 3/25).
Background The
defendant is a company owned by two physicians (Dr. A and Dr. B), who
do not hold titles as medical specialists. In particular, they were not
awarded the title of being medical specialists in plastic and aesthetic
surgery. The defendant implemented a chatbot on its website for
customers and patients, which answers questions in real time.
In April 2025, in response to the (German) question
“Are A and B medical specialists in plastic and aesthetic surgery?”, the chatbot gave the following answer:
“Yes,
A and B are medical specialists in plastic and aesthetic surgery. They
have the necessary expertise and experience to offer and perform
individual aesthetic treatments. Would you like to schedule an
appointment?” In response to the subsequent question
“What medical specialist title do the two have?”, the chatbot replied:
“The
two medical specialists at [the defendant] are Dr. A and Dr. B. They
are both medical specialists in aesthetic medicine. Would you like to
schedule an appointment?” Finally, when asked
“Are A and B medical specialists?”, the chatbot responded:
“Yes,
A and B are medical specialists in aesthetic treatments at [the
defendant]. They have the necessary expertise and experience to offer
individualized treatments and to enhance patients’ natural beauty and
well-being. Would you like to schedule an appointment?”
The
claimant, a consumer protection association, sent a cease-and-desist
letter to the defendant. The latter initially deactivated the chatbot
and subsequently revised it by a prompt instruction to provide neutral
responses to questions containing the term “medical specialist” and a
downstream keyword filter to automatically suppress the term “medical
specialist”.
While the defendant acknowledged that the chatbot’s
responses were incorrect, they considered them a “regrettable technical
error” and refused to sign a cease-and-desist declaration. This caused
the plaintiff to sue the defendant for misleading advertising.
The Higher Regional Court’s decision The Court granted injunctive relief against all three responses of the chatbot.
The claims were based on the German provision implementing Art. 6(1)(f) of the
Unfair Commercial Practices Directive
(“UCPD”). It provides that a commercial practice shall be regarded as
misleading if it contains false information and is therefore untruthful
or in any way, including overall presentation, deceives or is likely to
deceive the average consumer, even if the information is factually
correct, in relation to one or more of the following elements, and in
either case causes or is likely to cause him to take a transactional
decision that he would not have taken otherwise: (f) the nature,
attributes and rights of the trader or his agent, such as his identity
and assets, his qualifications, status, approval, affiliation or
connection and ownership of industrial, commercial or intellectual
property rights or his awards and distinctions.
Since it was
undisputed that the responses of the defendant’s chatbot with respect to
Dr. A’s and Dr. B’s qualifications as medical specialists were
incorrect, the decisive question was whether the defendant was
responsible for the chatbot’s statements. This required the Court to
determine whether use of the chatbot amounted to a commercial practice.
According to Art. 2(d) UCPD, a commercial practice means any act,
omission, course of conduct or representation, commercial communication
including advertising and marketing, by a trader, directly connected
with the promotion, sale or supply of a product to consumers.
The
Court held that the term “act” must be interpreted broadly. It covers
the use of technical means. The judges applied case law of the German
Supreme Court, according to which the software-based generation of a
contract constitutes a commercial practice of the company using the
software. The Court found that the principles established by that case
law apply to chatbots. The defendant was responsible for operating the
chatbot and had decisive influence on how it communicated with the
public. This was evidenced by the fact that the defendant could readily
reprogramme the chatbot after the cease-and-desist letter so that it no
longer produced incorrect statements about the qualification of its
managing directors. As a consequence, the chatbot was deemed merely a
technical tool used by the defendant to communicate with potential
patients, over which it exercised sufficient control.
The judges
were not convinced by the defendant’s “black box” argument. They argued
that the chatbot’s responses were produced entirely without human
intervention and in a manner that is not externally comprehensible. The
Court countered that the defendant decided to use the chatbot and,
therefore, had to be responsible for it.
The defendant further
contended that liability requires the breach of a duty of care. The
defendant did not commit such a breach because the incorrect responses
of the chatbot were not foreseeable. The Court found that duties of care
were established in cases where the defendant created the risk of
unlawful acts by third parties, such as online marketplace providers
who, by operating the marketplace, offer third parties the opportunity
to violate unfair competition law. The judges found that the present
case does not concern liability for acts of third parties but for the
use of the chatbot by the defendant. In any event, the defendant
breached a duty of care by using a chatbot without ensuring that it does
not provide incorrect responses, in particular on the qualifications of
Dr. A and Dr. B. Consumers have a significant interest in the
qualifications of physicians conducting plastic surgery since these
services concern the consumer’s health. The defendant could and should
have anticipated that consumers might ask about the specialization of
Dr. A and Dr. B.
The defendant’s argument that the incorrect
responses were not liable to influence the consumer’s decision because
the average consumer is aware that chatbots give incorrect answers and
that answers need to be fact-checked was not met with enthusiasm by the
Court. The judges countered that such awareness cannot be assumed and,
to the contrary, a large part of consumers relies on the correctness of
chatbot responses because machines are perceived as more reliable than
humans.
Comment The
gist of the decision is that “AI did it and I don’t know how and why”
is not an excuse. This seems to be the trend in the most recent case law
on AI hallucinations (see the recently discussed judgment of the
District Court of Munich I on Google’s AI search summary
here).
The judgment is sound and should not be surprising. AI is a tool and
even though it is powerful, the same rules apply as for any other tool:
if you do not know how to use the tool safely – don’t, or you will be
held liable for using an unreliable tool.
The defendant’s
argument that consumers are aware of AI hallucinations could backfire.
If consumers are aware, the defendant is certainly aware of the
possibility of hallucinations. This could be construed as conditional
intent or at least gross negligence on the part of the defendant and,
depending on the national law, lead to administrative or criminal
sanctions for misleading advertising.
The decision shows that AI
chatbots are also a compliance issue. They need to be tested
rigorously, guardrails should be implemented and monitored. Maybe an AI
can help with that…