Perplexity faces class action lawsuit over alleged data sharing with Google and Meta

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A proposed class action lawsuit accuses Perplexity of embedding ad trackers that share user conversations with Google and Meta without consent. The complaint alleges that even users who activated Incognito Mode had their chats, including personally identifiable information, shared with tech giants for advertising purposes. Damages could exceed $5,000 per violation.

Perplexity Hit With Class Action Lawsuit Over Privacy Violations

Perplexity's AI search engine is facing a proposed class action lawsuit that accuses the company of sharing user conversations with Google and Meta without consent, even when users believed their chats were private. Filed Tuesday in federal court in San Francisco, the complaint alleges that Perplexity embedded ad trackers including Facebook Meta Pixel, Google Ads, and DoubleClick into its platform, effectively creating what the lawsuit describes as "browser-based wiretap technology"

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. The anonymous plaintiff, identified as John Doe from Utah, claims he used Perplexity to manage his taxes, seek legal advice, and make investment decisions, only to discover that complete and partial transcripts of these sensitive conversations were allegedly shared with tech giants alongside personally identifiable information

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Source: Android Authority

Source: Android Authority

Data Sharing Without Consent Affects All Users

The lawsuit alleges that sharing data without consent occurred regardless of whether users signed up for a Perplexity account, with "enormous volumes of sensitive information from both subscribed and non-subscribed users" being transmitted to third parties

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. Using developer tools, the complaint found that opening prompts are always shared, as are any follow-up questions the AI search engine suggests that users click on. For non-subscribed users, the privacy concerns appear more severe, with initial prompts shared alongside "a URL through which the entire conversation may be accessed by third parties like Meta and Google"

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. The complaint argues that Perplexity never disclosed to users that it secretly uses tech giants' ad trackers, violating state and federal laws by prioritizing profits over user privacy rights.

Incognito Mode Called a "Sham" in Privacy Complaint

Perhaps most troubling, the lawsuit alleges that Perplexity's Incognito Mode does nothing to protect user privacy. "Even paid users who turned on the 'Incognito' feature still had their conversations shared with Meta and Google, along with their email addresses and other identifiers that allowed Meta and Google to personally identify them," the complaint states

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. This revelation directly contradicts user expectations about what incognito features typically provide. The lawsuit characterizes this as an "extreme invasion" of consumers' privacy rights, noting that chats are shared with PII even when users specifically opt for anonymity

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Source: Inc.

Source: Inc.

Sensitive Data and Targeted Advertising Concerns

The complaint highlights how users frequently turn to AI systems to research health and medical information, particularly when consulting with a human might be embarrassing or upsetting. Perplexity allegedly capitalizes on users' tendency to overshare by training its system to request that users upload sensitive data during chat sessions. For example, when responding to a basic prompt like "What is the best treatment for liver cancer?" Perplexity volunteers that "I can help you interpret a specific scan report, biopsy result, or proposed treatment plan if you share more details"

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. The lawsuit alleges that Google and Meta exploit this sensitive data for targeted advertising and reselling to additional third parties, potentially resulting in users being bombarded with ads they "may find overwhelming, disturbing, or, in many instances, physically deleterious"

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Technology Behind the Alleged Privacy Violations

Among the invasive trackers embedded in Perplexity's platform are Facebook Meta Pixel, Google Ads, Google DoubleClick, and possibly Meta's "Conversions API," which Meta allegedly recommends as a "workaround" to prevent "savvy users" from blocking Pixel tracking

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. The lawsuit notes that Meta has been hit with several privacy lawsuits opposing this technology, with some resulting in settlements. Additionally, the complaint points out that Perplexity doesn't require users to agree to its privacy policy before using the service, and finding that policy at all is difficult as it's not linked from the Perplexity web app

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Source: PC Magazine

Source: PC Magazine

Potential Damages and Company Responses

The plaintiff seeks damages of up to $5,000 per violation and an injunction to stop Perplexity from engaging further in unauthorized sharing of personal data

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. Given that the proposed class could include Perplexity users in the US whose chats were shared with Google and Meta between late 2022 and early 2026, total damages could potentially reach millions of dollars

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. A Meta spokesperson pointed to a Facebook help page stating it's against the company's rules for advertisers to send sensitive information, while a Perplexity spokesperson said they "have not been served any lawsuit that matches this description"

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. Google told Ars Technica that "Businesses manage the data they collect and are responsible for informing users about it," adding that by default, data sent to Google Analytics for measurement does not identify individuals

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. Without an injunction blocking Perplexity's allegedly ongoing privacy harms, the plaintiff claims he will be blocked from using his preferred search engine, highlighting the broader tension between user consent, privacy rights, and the rapid adoption of AI tools in everyday life

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