Perplexity’s “Incognito Mode” is a “sham,” lawsuit says

A recent lawsuit has raised serious allegations against Perplexity, the AI search engine, claiming that its 'Incognito Mode' is ineffective and misleading. Users are encouraged to engage deeply in chat sessions, but the lawsuit contends that these interactions are frequently shared with tech giants like Google and Meta without the users’ explicit consent. The legal complaint asserts that this sharing occurs regardless of whether individuals have registered for a Perplexity account. It highlights that a substantial amount of sensitive data, including initial prompts and follow-up questions, is transmitted to third parties. Particularly concerning is the assertion that non-subscribed users face heightened risks, as their prompts are linked to URLs that allow complete access to their conversations by companies such as Meta and Google. Moreover, the lawsuit underscores that even when users opt for 'Incognito Mode'—which is intended to safeguard their anonymity—their discussions still get shared alongside personally identifiable information (PII). According to the plaintiff, the feature is nothing more than a facade, providing a false sense of security. This sentiment is echoed in the complaint, which states, "'Incognito' mode does nothing to protect users from having their conversations shared with Meta and Google." The privacy concerns have culminated in a proposed class action lawsuit filed by an anonymous individual, referred to as John Doe. He has likened the tracking technology used by Perplexity to "browser-based wiretap technology," allowing companies to infringe upon the privacy of users' chat logs. The lawsuit accuses Perplexity of violating both state and federal laws, as it allegedly failed to inform users about its reliance on tracking technologies from these major corporations. It calls into question the ethical stance of these companies, suggesting they prioritize profit over the privacy rights of their users.