Perplexity AI, the AI-powered search engine that has positioned itself as a privacy-conscious alternative to traditional search, is facing a class-action lawsuit alleging it secretly shared users' personal data with Meta and Google through embedded tracking software.
The complaint was filed on March 31, 2026 in the U.S. District Court for the Northern District of California by a Utah man identified as John Doe, who is seeking to represent a broader class of Perplexity users.
What the Lawsuit Alleges
According to the complaint, Perplexity embedded "undetectable" tracking technology into its search engine's code that automatically transmits users' conversations to Meta Platforms and Alphabet's Google. The lawsuit claims that as soon as users log into Perplexity's home page, trackers are downloaded onto their devices, giving the two tech giants full access to conversations between users and the AI search engine.
Perhaps most damaging is the allegation that this data sharing occurs even when users sign up for Perplexity's "Incognito" mode — a feature that ostensibly promises enhanced privacy. The complaint states that this backdoor access allows Meta and Google to exploit sensitive data for their own benefit, including targeting individuals with advertising and reselling their data to additional third parties.
The case — Doe v. Perplexity AI Inc., 3:26-cv-02803 — invokes California privacy laws as its legal basis.
Perplexity's Response
Perplexity spokesperson Jesse Dwyer told reporters that the company "had not been served with any lawsuit matching this description" and was therefore "unable to verify its existence or claims." Meta, for its part, pointed to existing policies that prohibit advertisers from submitting sensitive data.
A Pattern of Legal Trouble
This is not Perplexity's first legal challenge in recent months. The company is also facing a separate lawsuit from Amazon over its agentic shopping feature, which uses automation to place orders on behalf of users. Amazon alleges that Perplexity covertly accessed its customer accounts while disguising automated activity as human browsing.
Implications for AI Search
The lawsuit strikes at a fundamental tension in the AI industry: companies that market themselves on user trust and privacy may still rely on advertising-adjacent business models that require data sharing. If the allegations hold up in court, it could force a reckoning across AI search products about how user data is monetized behind the scenes.
For Perplexity, which reportedly has over 15 million monthly active users, the stakes extend beyond legal liability. The company's brand is built on being a cleaner, more trustworthy alternative to ad-driven search — an image that allegations of hidden tracking could significantly undermine.
