Perplexity AI's 'Incognito Mode' Alleged to Be a 'Sham' in Lawsuit Over Data Sharing with Google and Meta

A lawsuit has leveled a direct and damaging allegation against Perplexity AI: its so-called 'Incognito Mode' is a 'sham.' The core claim is that the AI search engine, which encourages users to engage in detailed chat sessions, systematically shares the entirety of those conversations with third parties like Google and Meta without user knowledge or consent. This alleged data flow happens to every user, regardless of whether they have a Perplexity account, funneling what the complaint calls 'enormous volumes of sensitive information' to external advertising and analytics giants.

The legal complaint details a technical mechanism that purportedly enables this. Using developer tools, the plaintiffs found that a user's opening prompt is always shared. More critically, any follow-up questions generated by Perplexity's AI that a user clicks on are also transmitted. The situation is allegedly worse for non-subscribed users. For them, the initial prompt is shared alongside a unique URL that could potentially allow third parties like Meta and Google to access the entire conversation thread, stripping away any expectation of privacy the 'Incognito' label implies.

This lawsuit places Perplexity under intense scrutiny for its fundamental data-handling practices. It directly challenges the privacy assurances implied by its product features, raising significant questions about compliance with data protection norms and the integrity of user trust in AI-powered search tools. The allegations suggest a systemic practice, not an isolated bug, which could expose the company to regulatory pressure and erode its user base if proven true.