Perplexity's alleged data-sharing scandal has sparked a class-action lawsuit claiming its "Incognito Mode" is a sham that fails to protect user privacy. The complaint alleges the AI search engine shares entire chat logs, including sensitive financial and health data, with Google and Meta without user consent. Non-subscribers face heightened risks, with conversations accessible via URLs shared with third parties. Incognito Mode allegedly offers no real anonymity, as PII like email addresses still leaks to ad trackers.

The lawsuit targets all three companies, accusing them of prioritizing ad revenue over privacy by exploiting user data.