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Perplexity AI Wins Appeal Against Amazon in AI Agent Shopping Lawsuit

Created at 5 Aug · 8:21 PM1 source↑ Market-relevant
IN SHORT

A federal appeals court overturned a previous order that had blocked Perplexity's AI shopping tools on Amazon. The court ruled that users, not Perplexity, accessed Amazon through its AI agent, potentially shaping future legal battles over AI interactions with online commerce.

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Who's Involved

Perplexity
AI startup whose AI shopping tools were subject to a lawsuit
Amazon
E-commerce platform that sued Perplexity over AI agent access
Ninth Circuit Court of Appeals
Federal appeals court that overturned the injunction

↳ Why This Matters

This ruling could significantly influence how courts handle future legal challenges involving autonomous AI agents interacting with online platforms and e-commerce, potentially setting precedents for AI's role in online transactions.

Key facts

  • A federal appeals court overturned an order blocking Perplexity's AI shopping tools on Amazon.
  • The Ninth Circuit Court of Appeals ruled Amazon is unlikely to succeed on its claim that Perplexity violated the Computer Fraud and Abuse Act.
  • The court determined that users, not Perplexity, accessed Amazon through its AI agent, Comet.
  • Amazon had previously sued Perplexity, alleging its AI browser violated terms of service and accessed accounts without authorization.
  • A federal judge had previously granted Amazon a preliminary injunction, temporarily blocking Perplexity's AI shopping tools.

A federal appeals court has overturned an order that had blocked Perplexity's AI shopping tools on Amazon, marking an early victory for the startup in a significant legal dispute concerning AI agents and online commerce.

The Ninth Circuit Court of Appeals ruled that Amazon is unlikely to succeed in its claim that Perplexity violated the Computer Fraud and Abuse Act, a federal anti-hacking law. The court stated that for a plaintiff to succeed on a CFAA claim, they must demonstrate intentional, unauthorized access to a protected computer that results in a loss of at least $5,000 within a one-year period.

The court's decision highlighted that Amazon's users, rather than Perplexity itself, were accessing the platform through Perplexity's agentic AI browser, Comet. Comet is designed to browse websites, log into accounts, and make purchases on behalf of users.

The legal battle originated in November when Amazon issued a cease-and-desist letter to Perplexity before initiating a lawsuit. Amazon contended that Perplexity's Comet browser misrepresented automated traffic as standard web browsing, breached its terms of service, and accessed customer accounts without authorization. Perplexity countered that Comet operated with user consent, utilizing credentials stored on users' devices, and accused Amazon of attempting to stifle consumer choice in AI assistants.

Previously, in March, a federal judge had granted Amazon a preliminary injunction, finding substantial evidence that Perplexity likely contravened federal and California computer fraud laws by accessing password-protected Amazon accounts without permission. This injunction had temporarily prohibited Comet from conducting shopping activities on Amazon while the lawsuit progressed.

Frequently asked questions

A federal judge had granted Amazon a preliminary injunction, temporarily blocking Perplexity's AI shopping tools from operating on Amazon.

Amazon claimed Perplexity violated the Computer Fraud and Abuse Act, a federal anti-hacking law, and California computer fraud laws.

Perplexity's AI agent browser is called Comet.

What Happens Next

01The underlying lawsuit between Amazon and Perplexity will continue.
02Future legal battles may be shaped by this ruling on AI agent access.

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Cadence

How It Developed

Amazon sent Perplexity a cease-and-desist letter and filed suit.
Amazon accused Perplexity's Comet browser of disguising automated traffic and violating terms of service.
A federal judge granted Amazon a preliminary injunction, temporarily blocking Comet from shopping on Amazon.
A federal appeals court overturned the injunction, ruling in favor of Perplexity.
The court found users, not Perplexity, accessed Amazon through its AI agent under federal law.

Sources

T1
Perplexity Wins Appeal Against Amazon in AI Agent Shopping LawsuitDecrypt

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