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Perplexity AI faces lawsuit over alleged user data tracking

Perplexity AI has come under legal scrutiny following a proposed class-action lawsuit alleging that the company secretly shared sensitive user data with Meta Platforms and Google. The complaint claims that the AI search platform embedded tracking tools within its system, enabling the transmission of personal user information—even when users opted for privacy features such as Incognito mode.

Filed in a federal court in San Francisco, the lawsuit has been brought forward by an individual identified as John Doe, who aims to represent a broader class of affected users. The complaint alleges violations of both federal and California privacy laws, raising concerns about how AI-driven platforms handle user data.

Allegations of Hidden Tracking and Data Misuse

According to the filing, users who accessed Perplexity’s platform may have unknowingly downloaded tracking software onto their devices. These trackers allegedly enabled third parties, including Meta and Google, to access conversations between users and the AI system.

The lawsuit further claims that this data-sharing occurred regardless of privacy settings, including when users activated Incognito mode. It alleges that such access could allow third parties to leverage sensitive user information for targeted advertising or other commercial purposes, potentially extending to data resale.

The plaintiff reportedly shared highly confidential information with the platform, including financial and personal details, which forms the basis of the legal complaint.

Company Responses and Broader Legal Challenges

Responding to the allegations, a spokesperson for Meta reiterated that its policies prohibit advertisers from sharing sensitive personal data. Meanwhile, Perplexity stated that it has not been formally served with any lawsuit matching the claims and is unable to verify the allegations at this stage.

Separately, Perplexity is also dealing with another legal dispute involving Amazon. The e-commerce giant has accused the AI startup of unauthorized access to its systems through an automated shopping feature. A federal judge has reportedly issued a temporary restriction on Perplexity’s access via its browser tool in that case.

The developments highlight growing regulatory and legal pressures on AI platforms, particularly around data privacy, transparency, and the responsible deployment of emerging technologies.