Amazon Threatens Legal Action Against Perplexity Over AI Shopping Agent

Reviewed byNidhi Govil

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Amazon has sent a cease-and-desist letter to Perplexity demanding it stop allowing its Comet AI browser to make purchases on behalf of users, sparking a heated dispute over AI agent rights and e-commerce control.

Legal Dispute Erupts Over AI Shopping Rights

Amazon has escalated its conflict with AI search startup Perplexity by sending a cease-and-desist letter demanding the company prevent its Comet browser from making purchases on behalf of users

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. The e-commerce giant claims Perplexity's AI-powered shopping assistant violates Amazon's terms of service by failing to identify itself as an automated agent when browsing and purchasing products.

Source: The Verge

Source: The Verge

Perplexity responded with a strongly worded blog post titled "Bullying is not innovation," characterizing Amazon's legal threat as aggressive and describing it as "Amazon's first legal salvo against an AI company"

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. The AI startup argues that since its agent acts on behalf of human users, it automatically has the same permissions as those users and shouldn't need to identify itself as an agent.

Technical Capabilities and User Experience

Comet, Perplexity's agentic AI browser, can find and purchase products from various websites including Amazon without requiring users to manually log in or enter payment information

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. In testing, the browser successfully completed a purchase on Amazon within approximately 30 seconds, using the user's default payment method and address automatically.

Source: Decrypt

Source: Decrypt

The Register reports that Perplexity's software attempts to avoid detection when interacting with Amazon's web store, similar to concerns raised in Reddit's lawsuit against Perplexity regarding stealthy operations

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. This approach contrasts with other third-party services that openly identify themselves when acting on behalf of users, such as food delivery apps and online travel agencies.

Amazon's Position and Concerns

Amazon argues that third-party applications offering to make purchases for customers should "operate openly and respect service provider decisions whether or not to participate"

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. The company claims that Comet provides a "significantly degraded shopping and customer service experience" and has repeatedly requested Perplexity remove Amazon from the Comet experience.

The dispute appears partly motivated by Amazon's concern that AI agents may bypass its personalized product recommendations and advertising revenue streams. Unlike human shoppers who might be influenced by sponsored results and upsells, AI agents focused on specific purchases could reduce Amazon's opportunities for additional sales and advertising revenue

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Source: PC Magazine

Source: PC Magazine

Broader Implications for AI Commerce

This conflict represents a significant precedent for the emerging field of agentic AI commerce. As Santa Clara University law professor Eric Goldman notes, Amazon could potentially restrict credential sharing in its terms of service, which would put users in breach of agreement for sharing login information with third-party AI agents

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The dispute contrasts sharply with Walmart's approach, which recently partnered with OpenAI to allow ChatGPT users to shop its catalog directly through the AI interface using Instant Checkout technology

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. This partnership demonstrates that some retailers are embracing agentic commerce rather than blocking it.

Security concerns also factor into the debate, as AI agents can be vulnerable to prompt injection attacks where malicious instructions embedded in websites could trick agents into making unintended purchases. OpenAI acknowledged these risks when releasing its own ChatGPT Atlas shopping agent, admitting it can "make sometimes surprising mistakes"

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