Perplexity AI Faces Legal Challenge Over Alleged Data Sharing with Tech Giants

A new lawsuit accuses the AI search company Perplexity of systematically sharing user conversations with Google and Meta, regardless of privacy settings. The proposed class action, filed by an anonymous user, claims the company's practices expose sensitive information users believed was private.

The complaint states that every query entered into Perplexity's chat interface, including follow-up questions, is transmitted to the advertising platforms. This allegedly occurs even for users who do not create an account. For those without subscriptions, the initial prompt is reportedly shared alongside a web link that grants third parties access to the entire conversation history.

A central allegation targets Perplexity's 'Incognito Mode.' The suit calls the feature a 'sham,' asserting it fails to prevent data sharing. According to the filing, paid subscribers who enable this mode still have their dialogues sent to Google and Meta, accompanied by email addresses and other identifiers that can link the data to specific individuals.

The anonymous plaintiff argues that Perplexity uses what he describes as 'browser-based wiretap technology'—common ad trackers—without proper disclosure. The lawsuit, which names Google and Meta as co-defendants, alleges violations of state and federal law, contending the companies prioritized data collection over user privacy. The complaint specifically mentions that financial and health details discussed in chats could be among the information shared.

Source: Ars Technica