Perplexity, one of today’s fastest-growing AI search tools, is suddenly in big trouble. And this time it’s not about accuracy or hallucinations.
A new lawsuit raises uncomfortable questions about what’s actually happening behind the scenes with user data, especially when people assume their chats are private. And if the allegations hold any weight at all, this could be one of those moments that causes many users to reconsider how casually they share information with AI tools.
Is Perplexity’s “Incognito Mode” actually private?
Not quite, according to a newly filed class action lawsuit from an anonymous Perplexity user, John Doe. The complaint alleges that Perplexity’s so-called Incognito Mode is essentially a “sham” that doesn’t protect user data in the way most people would expect.
The lawsuit alleges that user conversations, including potentially sensitive topics such as financial advice, health concerns or legal issues, were shared with third parties such as Google and Meta. And as reported by Ars TechnicaThis happened even when users explicitly chose incognito mode, which is intended to limit tracking and data collection.
Even more worrying is the type of data allegedly involved. According to reports, information such as IP addresses, email IDs, geolocation data, and even full chat transcripts may have been shared for promotional purposes. The lawsuit also accuses Perplexity of embedding tracking tools similar to those used in online advertising without clearly informing users. Some even claim that entire conversations can be accessed via publicly accessible links.
Why this lawsuit could change our trust in AI
This goes beyond a single app as AI tools feel personal, making over-sharing easier. The lawsuit also alleges that years of chats were shared with advertising giants and that Perplexity does not clearly disclose its privacy policies like its competitors do.
If true, it could force stricter transparency across all AI platforms. It’s just accusations for now, but enough to make the next AI prompt seem a little less casual.
