Perplexity AI Sued for Sharing User Conversations With Meta and Google Despite Incognito Mode

A proposed class action lawsuit accuses AI search engine Perplexity of embedding trackers from Meta and Google that shared user conversations, email addresses, and other identifiers — even for paid subscribers who enabled the company's "Incognito" mode.

The Allegations

The lawsuit claims that Perplexity "effectively planted a bug" on users' computers by embedding third-party tracking pixels inside its AI search engine. Key allegations include:

• All users affected — Both free and paid subscribers had their conversations shared with Meta and Google
• Incognito mode ineffective — The paid feature "does nothing" to protect user privacy, according to the suit
• Personal identifiers shared — Email addresses and other data that allowed Meta and Google to personally identify users were transmitted alongside conversation content

Background

Perplexity positions itself as a privacy-friendly alternative to traditional search engines, with its Incognito mode being a key selling point for premium subscribers. The company has raised hundreds of millions of dollars and has been valued at over $9 billion.

Legal Implications

If the allegations are proven, the case could have significant implications for:

• AI search companies that position themselves as privacy-focused
• The broader AI industry regarding how conversational AI services handle user data
• FTC enforcement — the agency has been increasingly aggressive about AI-related privacy violations

Broader Trend

This lawsuit is part of a growing wave of litigation targeting AI companies over data practices. Jay Edelson, a prominent tech litigator, has been filing cases against OpenAI and Google over their LLMs, calling the current state of AI data practices a "Wild West."

The case also highlights the tension between AI companies' need for training data and users' expectations of privacy. As conversational AI becomes more intimate — handling personal questions, work documents, and sensitive information — the bar for data protection continues to rise.