Amazon has initiated legal action against Perplexity, alleging that the company’s AI shopping agent, Comet, is violating its terms of service by facilitating purchases without proper disclosure. The lawsuit was filed on November 4, 2023, in a federal court in San Francisco. This case highlights the growing tension between major online retailers and emerging artificial intelligence technologies.
The crux of the dispute centers around the functionality of Comet, which uses AI to assist users in purchasing items online based on their preferences and purchasing histories. Amazon claims that this activity amounts to “computer fraud,” as it does not inform users when Comet is making purchases on their behalf. The company argues that such practices undermine its business model, which relies heavily on advertising revenue from promoted products on its platform.
In response to the lawsuit, Perplexity has characterized Amazon’s actions as an attempt to stifle innovation. A representative for Perplexity, Beejoli Shah, stated, “Instead of supporting innovation that lets people choose their own AI assistants for agentic shopping and other tasks, Amazon is doubling down on old tactics: blocking user choice with litigious bullying.” Shah emphasized that Comet acts solely as a user agent, functioning within the permissions granted by the user.
Amazon’s filing asserts that Perplexity is in violation of its guidelines, which prohibit the use of data mining and similar tools for gathering information. The complaint contends that Perplexity is not permitted to operate in ways that are expressly forbidden. “Amazon’s request is straightforward: Perplexity must be transparent when deploying its artificial intelligence,” the document states.
The lawsuit raises significant questions about the future of AI in online shopping. As AI technologies become increasingly sophisticated, major players like Amazon are looking to protect their interests while navigating the evolving landscape of consumer technology. The legal battle could set important precedents regarding the rights and responsibilities of AI shopping agents.
Perplexity maintains that its AI agents do not engage in activities typically associated with bots, such as crawling or scraping data. Shah pointed out that user agents are designed to operate strictly at the user’s request, acting only on their behalf. This distinction is crucial in the ongoing debate over the role of AI in e-commerce.
The conflict between Amazon and Perplexity marks a significant moment in the ongoing discussion about the implications of agentic AI technologies. With both sides firmly entrenched in their positions, the outcome of this case may have lasting effects on how AI is integrated into online shopping experiences. As the legal proceedings unfold, the technology community will be watching closely to see how this dynamic between innovation and regulation plays out.
