Perplexity’s “Incognito Mode” is a “sham,” lawsuit says (arstechnica.com)

Perplexity, an AI search engine, is facing a class action lawsuit that accuses it of unlawfully sharing user data with tech giants Google and Meta. The lawsuit claims that the company encourages deeper interactions by engaging users in chat sessions, during which sensitive information—including personally identifiable information (PII)—is allegedly transmitted without users’ consent. This includes all initial prompts and follow-up questions, raising significant privacy concerns, particularly for non-subscribed users, whose interactions are reportedly accessible via specific URLs that expose entire conversations. The implications of this lawsuit are profound for the AI/ML community, as it highlights critical privacy and data-sharing issues inherent in AI-driven platforms. By branding its "Incognito Mode" as a protective feature while continuing to share data, Perplexity is accused of misleading users about their privacy rights. This case underscores the urgent need for stricter compliance with privacy regulations and emphasizes how AI companies must prioritize user consent and transparency in handling sensitive information, especially in light of increasing scrutiny on data privacy practices across the tech industry.