Is Perplexity Incognito Mode really private? Lawsuit says otherwise

Perplexity AI is being called out over how it handles user data, and this time the focus is on its Incognito Mode. A recent lawsuit claims that the feature does not actually keep conversations private, even though that is what most users would expect. Also Read: Google Meet hits Apple CarPlay before Android Auto, here’s how it works

A lot of people use AI tools like this for more than just basic searches. It’s not uncommon for users to ask about finances, legal matters, or even health-related issues. That is where privacy starts to matter more, especially when a feature is clearly labelled as “Incognito”. Also Read: Meta layoffs continue in 2026, around 200 jobs cut in California

What the issue is about

According to the lawsuit, Perplexity is using tracking tools linked to Google and Meta. The claim is that user interactions, including prompts and follow-up clicks, are being shared with these platforms. Also Read: Google Pixel 10 can now run Steam games: Here’s how it works

This is not limited to normal usage. The complaint says this happens even when Incognito Mode is turned on. In some cases, it is also being alleged that entire conversations could be accessed by third parties, particularly if the user is not logged in.

The data involved is not just basic queries. It may include personal information depending on what the user has typed into the chat.

Why this is a concern

If someone turns on Incognito Mode, they usually assume their session is private and not being tracked in the usual way.

The lawsuit claims that this is not happening. Even users who tried to stay anonymous may still have had their data shared, along with identifiers that can link activity back to them.

There are also concerns around how clearly this is communicated. The complaint says users are not properly told how their data is handled, and even finding the privacy policy is not very straightforward.

Why it matters for users

This becomes important because of how people actually use these tools. Many users treat AI chat platforms as a place to ask things they wouldn’t normally search in public.

The case also points to the kind of things people are actually searching. This includes financial questions, tax-related queries, and even health concerns. If that sort of information ends up being tracked or shared, it changes how comfortable people feel using these platforms.

There is also the possibility of users seeing ads based on conversations they thought were private, which adds to the concern.

What happens next

Perplexity, along with Google and Meta, will respond as the case moves forward. Right now, it’s still a legal claim, nothing has been proven.

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At the same time, it puts the focus back on how these platforms handle user data. Features like Incognito Mode may sound clear on paper, but what actually happens in the background is what really matters.