AI search startup Perplexity AI has landed in fresh legal trouble, with a proposed class-action lawsuit accusing it of secretly sharing sensitive user data with Meta Platforms and Google.

The case, reportedly filed in a San Francisco federal court, claims the company may have violated privacy laws by transmitting personal user information—even when users were in Incognito mode.

What the Lawsuit Claims

According to the complaint, a user identified as “John Doe” alleges that Perplexity embedded tracking tools within its platform that automatically collect and share user interactions.

The key concern here is serious:
The lawsuit claims that conversations between users and the AI—including sensitive details like financial information and personal data—were allegedly accessible to third parties.

Even more concerning, the filing argues that this data sharing continued despite users opting for privacy features like Incognito mode.

The complaint also accuses Meta and Google of potentially using this data for targeted advertising and further distribution.

How Perplexity Responded

Perplexity has pushed back strongly.

A company spokesperson said it has not been formally served with any lawsuit matching these claims and therefore cannot verify the details. In simple terms, the company is questioning whether the case, as described, has officially reached them yet.

Meta, on the other hand, referred to its policies, stating that advertisers are not allowed to send sensitive personal information through its systems.

Google has not publicly detailed its response in this context so far.

Bigger Legal Pressure on Perplexity

This isn’t the only challenge the company is dealing with.

Perplexity is already facing a separate legal dispute with Amazon over its AI-powered shopping feature. Amazon has accused the startup of accessing user accounts without proper authorization and masking automated actions as human behavior.

In fact, a U.S. federal judge recently sided with Amazon in part, temporarily blocking Perplexity from interacting with its platform through a browser tool.

Why This Case Matters

If proven, these allegations could have wider implications—not just for Perplexity, but for the entire AI search space.

AI tools often handle deeply personal queries. Users treat them like private assistants. That means trust is everything.

Any suggestion that conversations could be shared without clear consent raises serious questions about:

• Data privacy
• Transparency
• Platform accountability

The Takeaway

Right now, these are allegations—not proven facts. But the case highlights a growing tension in the AI industry.

As tools become more powerful and personal, the expectations around privacy are rising just as fast.

And for companies like Perplexity, the real challenge isn’t just innovation—it’s proving that user trust isn’t being compromised along the way.