Perplexity AI faces lawsuit over alleged 'undetectable' data tracking linked to Meta Platforms and Google

Perplexity AI faces class action and Amazon lawsuit over alleged secret data sharing and account access, raising serious privacy and security concerns.

Perplexity AI has been hit with a proposed class-action lawsuit accusing the startup of surreptitiously sharing sensitive user data with Meta Platforms and Google, with the complaint alleging that the AI search engine's actions violate California privacy laws, according to a report by Bloomberg.

According to the report, the complaint was filed by a Utah man identified only as John Doe, who is seeking to represent a broader class of Perplexity users, and claims that as soon as users log into Perplexity's home page, trackers are downloaded onto their devices, giving Meta and Google access to conversations between users and the platform's AI system, the filing states.

The lawsuit further alleges that users' personal data is transmitted to Meta and Google even when they opt for Perplexity's Incognito mode, with the complaint stating that such backdoor access allows the companies to exploit sensitive data for their own benefit, including targeting individuals with advertising and reselling data to additional third parties, as per the filing cited by Bloomberg.

The complaint also accuses Perplexity of embedding 'undetectable' tracking software into its search engine code, which automatically transmits users' conversations to Meta, Google and other third parties, while also naming Meta and Google as defendants for allegedly violating federal and state privacy and fraud laws, according to reports.

As per the filing, the plaintiff shared highly sensitive information with the chatbot, including details about his family's finances, tax obligations and personal investment strategies. Following the filing, a Meta spokesperson pointed Bloomberg to a Facebook help page stating that it is against the company's rules for advertisers to send sensitive information, according to the report.

Meanwhile, Perplexity spokesperson Jesse Dwyer informed the news agency that the company had not been served with any lawsuit matching the description and was therefore unable to verify its existence or claims, as per Bloomberg.

Separately, the Aravind Srinivas-led startup is also facing a lawsuit by Amazon over its agentic shopping feature, which uses automation to place orders on behalf of users, with Amazon alleging that Perplexity covertly accessed its customer accounts while disguising automated activity as human browsing, according to reports. The e-commerce company has further alleged that the feature poses security risks for customer data as the AI can operate within protected computer systems, including private accounts.

Amazon has also secured a significant legal win in the case, with a federal judge temporarily blocking Perplexity from accessing Amazon via its Comet browser, according to reports.