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. According to a report by Bloomberg, the lawsuit alleges that the AI search engine’s actions are a direct violation of California privacy laws.
Perplexity accused of sharing user data with Google:
Reportedly, the complaint was filed by a Utah man identified only as John Doe, who is seeking to represent a broader class of Perplexity users. The man claims that as soon as users log into Perplexity’s home page, trackers are downloaded onto their devices which give Meta and Google full access to the conversations between them and Perplexity’s AI machine.
Notably, the lawsuit also states that users’ personal data is transmitted to Meta and Google even when they specifically opt for Perplexity’s “Incognito” mode.
According to the complaint, the backdoor access allows Meta and Google to exploit this sensitive data for their own benefit, including targeting individuals with advertising and reselling their sensitive data to additional third parties.
The complaint also accuses Perplexity of twitter-tweetding ‘undetectable’ tracking software into its search engine’s code, which automatically transmits users’ conversations to Meta, Google, and other third parties.
The lawsuit filed in a San Francisco federal court also accuses Meta and Google of violating federal and state privacy and fraud laws.
According to the filing, the man shared highly sensitive information with the chatbot, including details about his family’s finances, tax obligations, and personal investment strategies.
Companies respond to the lawsuit:
Following the filing, a Meta spokesperson pointed Bloomberg to a Facebook help page which explicitly states that it is against the company’s rules for advertisers to send them sensitive information.
Meanwhile, Perplexity spokesperson Jesse Dwyer told the news agency, “We have not been served any lawsuit that matches this description, so we are unable to verify its existence or claims,” said Jesse Dwyer, a Perplexity spokesperson.
Perplexity’s legal woes:
The Aravind Srinivas-led AI search startup is also facing a lawsuit by Amazon over its agentic shopping feature, which uses automation to place orders on behalf of users. Amazon says Perplexity covertly accessed its customer accounts while disguising automated activity as human browsing. Amazon also alleged that Perplexity’s agents pose security risks for its customer data since the AI can act within protected computer systems, including private customer accounts.
The e-commerce giant also won a major victory in the case recently as a federal judge temporarily blocked Perplexity from accessing Amazon via its Comet browser.
