Perplexity AI hit with class-action lawsuit over alleged data sharing with Meta and Google

2 Sources

Share

Perplexity AI faces a class-action lawsuit alleging it secretly shared user conversations with Meta and Google through hidden tracking software, violating California privacy laws. The complaint claims personal data was transmitted even in Incognito mode, raising serious questions about AI companies' responsibilities in data handling and user consent.

Perplexity AI Accused of Secretly Sharing User Data

Perplexity AI is facing a class-action lawsuit filed in federal court in San Francisco, alleging the company surreptitiously shared personal information with Meta Platforms Inc. and Alphabet Inc.'s Google in violation of California privacy laws

1

. According to the complaint filed Tuesday, trackers are downloaded onto users' devices as soon as they log into the AI machine search engine's home page, giving Meta and Google full access to conversations between users and the chatbot

1

.

Source: Bloomberg

Source: Bloomberg

The lawsuit was filed on behalf of John Doe, a Utah man who shared sensitive information about his family's finances, tax obligations, and investment portfolio with Perplexity's platform

1

. The case seeks to represent a broader class of Perplexity AI users who may have had their private conversations exposed without user consent.

Hidden Tracking Technology Raises Privacy Concerns Among Users

The complaint alleges that Perplexity AI embedded undetectable tracking software into the search engine's code that automatically transmits users' conversations to Meta, Google, and other third parties

1

. This hidden tracking technology allegedly operates even when users activate Incognito mode, a feature typically associated with enhanced privacy protections

1

.

Source: Analytics Insight

Source: Analytics Insight

The lawsuit claims this data sharing allows Meta and Google to exploit sensitive information for their own benefit, including targeting individuals with advertising and reselling their data to additional third parties

1

. The allegations have quickly raised privacy concerns among users and experts who expect AI conversations to remain private

2

. Many people use AI tools to ask personal questions, plan finances, or solve work problems, making the potential breach particularly troubling

2

.

Violations of Computer Privacy Laws and Legal Implications

The lawsuit targets not only Perplexity AI but also Meta and Google, accusing them of violations of computer privacy laws and fraud laws at both federal and state levels

1

. The complaint alleges that these companies worked together to collect and share user data without consent, exploiting the tracking software embedded in Perplexity's platform.

A Meta spokesperson pointed to a Facebook help page stating it's against the company's rules for advertisers to send sensitive information

1

. Jesse Dwyer, a Perplexity spokesperson, stated the company had not been served any lawsuit matching the description and was unable to verify its existence or claims

1

. Google representatives did not immediately respond to requests for comment

1

.

AI Companies' Responsibilities in Data Handling Under Scrutiny

Legal watchers suggest this case could become a turning point in defining AI companies' responsibilities in data handling

2

. The lawsuit may establish important precedents regarding how much responsibility AI companies bear when managing user data and whether existing data privacy frameworks adequately protect users of AI-powered services.

The case, identified as Doe v. Perplexity AI Inc., 3:26-cv-02803, is being heard in the US District Court for the Northern District of California in San Francisco

1

. As AI tools become increasingly integrated into daily life for sensitive tasks, this lawsuit highlights the urgent need for clear standards around user consent and data protection in the AI industry. The outcome could influence how sharing user data with Meta and Google and other tech giants is regulated, potentially reshaping the landscape for AI-powered search engines and chatbots.

Today's Top Stories

TheOutpost.ai

Your Daily Dose of Curated AI News

Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.

© 2026 Triveous Technologies Private Limited
Instagram logo
LinkedIn logo