Perplexity, the AI search engine that has positioned itself as a privacy-focused alternative to traditional search engines, is facing a proposed class action lawsuit that accuses the company of sharing user data with Meta and Google—even when users had enabled the service’s Incognito mode. The lawsuit, reported by Ars Technica, alleges that Perplexity “effectively planted a bug” on users’ computers by embedding trackers from the advertising giants.
The Allegations
The lawsuit centers on claims that Perplexity’s Incognito mode provides users with a false sense of security. According to the complaint, even paid users who activated the privacy feature had their conversations shared with Meta and Google, along with their email addresses and other identifiers that allowed the companies to personally identify them.
The trackers embedded in Perplexity’s AI search engine collected a wide range of user data, including search queries, browsing history while on the Perplexity platform, and conversation content. This data was then transmitted to Meta and Google, potentially exposing sensitive user information to third parties without adequate disclosure.
Privacy Promises vs. Reality
Perplexity has built its brand partly on privacy assurances. The company markets its Incognito mode as a way for users to search the web without their queries being recorded or shared. However, the lawsuit suggests that these promises may be more marketing than substance.
“Perplexity told users their conversations were private, but they were secretly sharing that data with trackers from some of the most notorious data collectors in the industry,” said one attorney involved in the case. “This isn’t just a technical violation—it’s a betrayal of the trust that users placed in the platform.”
How the Trackers Work
The embedded trackers from Meta and Google operate similarly to those found on traditional websites, collecting information about user behavior and transmitting it back to the parent companies. In the context of an AI search engine, this means that every query, every follow-up question, and every piece of information users share with the AI becomes fodder for data collection.
For users who believed they were using a private alternative to Google Search, the revelation comes as a shock. The trackers effectively made Perplexity a vehicle for surveillance, even as the company promoted itself as a privacy-focused option.
Industry-wide Privacy Concerns
The Perplexity lawsuit highlights broader concerns about how AI companies handle user data. Unlike traditional web services that have been subject to decades of privacy regulation and public scrutiny, AI search engines are relatively new, and the regulatory framework around them remains nascent.
Privacy advocates argue that the case could set an important precedent for how AI companies must handle user data. If the lawsuit proceeds and Perplexity is found to have violated user privacy, other AI companies may face similar challenges to their own data practices.
Perplexity’s Response
Perplexity has defended its privacy practices, asserting that it is transparent about data collection and that users consent to certain data sharing when they use the service. However, critics argue that the company’s actual practices don’t match its public statements, and that the average user has no way to verify what data is being collected or where it’s being sent.
The company now faces the difficult task of rebuilding user trust while simultaneously defending against a potentially costly class action lawsuit. Industry observers suggest that the outcome of this case could significantly impact how AI search engines approach privacy going forward.
What Users Should Know
For users who have been relying on Perplexity’s privacy features, the lawsuit serves as an important reminder that no digital service can guarantee complete privacy. Even services that explicitly market themselves as privacy-focused may be collecting and sharing more data than users realize.
Experts recommend that users carefully review the terms of service and privacy policies of any AI service they use, and consider whether the convenience of AI-powered search is worth the potential privacy trade-offs. Until the legal proceedings clarify Perplexity’s actual practices, users may want to exercise caution about the types of sensitive information they share with the platform.