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SaaSGuard Risk Report
Perplexity
perplexity.ai
Generated May 4, 2026
Grade D
Score: 52 / 100
Executive summary
We analyzed Perplexity’s Terms of Service across 8 risk dimensions and found 12 flagged clauses across 7 categories.
Flagged clauses by category
Auto-renewal traps (2)
Severity 3 · notable
“You agree that if you purchase a subscription, your subscription will automatically renew at the subscription period frequency referenced on your subscription page (or if not designated, then monthly) and at the then-current rates, and your payment method will automatically be charged at the start of each new subscription period for the fees and taxes applicable to that period.”
Perplexity automatically renews your subscription at the current price and charges your payment method at the start of each new period.
You'll be charged for another subscription period if you forget to cancel, even if the price has gone up.
Matches FTC v. Amazon (Iliad Flow / Prime Enrollment) (2023)
Severity 3 · notable
“Upon expiration of your free trial, you will be charged the then-current subscription price for the applicable Service.”
Your free trial of Perplexity automatically converts to a paid subscription at the current price unless you cancel.
You will be charged for the service if you don't actively cancel your free trial before it ends.
Matches FTC v. Age of Learning (ABCmouse) — settled for $10M (2020)
Surprise price hikes (2)
Severity 4 · material
“The Company may, at any time, revise or change the pricing, availability, specifications, content, descriptions or features of any Offerings. We reserve the right to change prices for Offerings displayed on the Services at any time, and to correct pricing errors that may inadvertently occur (and to cancel any orders in our sole discretion that were purchased with pricing errors). All such changes shall be effective immediately upon posting of such new Offering prices to the Services and/or upon making the customer aware of the pricing error.”
Perplexity can change offering prices and correct pricing errors at any time, and may cancel orders with pricing errors.
The price you expect to pay can change suddenly, and your order might be canceled due to a pricing mistake.
Matches FTC v. MoviePass / Helios and Matheson Analytics (2021)
Severity 4 · material
“We reserve the right to change our subscription plans or adjust pricing for the paid Services in any manner and at any time as we may determine in our sole and absolute discretion. Except as otherwise provided in these Terms, any price changes or changes to your subscription plan will take effect following reasonable notice to you.”
Perplexity can change subscription plans or pricing at any time, with reasonable notice to you.
Your costs can increase unexpectedly, even if you have a current subscription.
Matches FTC v. MoviePass / Helios and Matheson Analytics (2021)
Data residency (1)
Severity 2 · minor
“The Services are operated by us in the United States. Those who choose to access the Services from locations outside the United States do so at their own initiative and are responsible for compliance with applicable local laws.”
Perplexity operates in the United States, and if you use their services from outside the US, you are responsible for following local laws.
You are solely responsible for ensuring compliance with any international laws if you use Perplexity outside the US.
Termination friction (2)
Severity 3 · notable
“In the event of Account deletion for any reason, the Company may, but is not obligated to, delete any of Your Content. the Company shall not be responsible for the failure to delete or deletion of Your Content.”
If Perplexity deletes your account for any reason, they may also delete your content, and they are not responsible for this deletion.
Your content could be permanently lost if Perplexity decides to delete your account.
Matches Bungie / Destiny 2 Account Termination Litigation (2023)
Severity 3 · notable
“If you breach any of the provisions of these Terms, all licenses granted by the Company will terminate automatically. Additionally, the Company may suspend, disable, or delete your Account and/or the Services (or any part of the foregoing) with or without notice, for any or no reason. If the Company deletes your Account for any suspected breach of these Terms by you, you are prohibited from re-registering for the Services under a different name.”
If you violate the terms, Perplexity can terminate your account and prohibit you from re-registering under a different name.
You could lose access to your account and be permanently banned from the service for any perceived violation.
Matches PayPal Account Hold / Freeze Class Action — settled for $4M (2021)
Liability caps (2)
Severity 4 · material
“TO THE EXTENT NOT PROHIBITED BY LAW, YOU AGREE THAT IN NO EVENT WILL THE COMPANY ENTITIES BE LIABLE (A) FOR DAMAGES OF ANY KIND, INCLUDING INDIRECT SPECIAL, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, LOSS OF USE, DATA OR PROFITS, BUSINESS INTERRUPTION OR ANY OTHER DAMAGES OR LOSSES, ARISING OUT OF OR RELATED TO YOUR USE OR INABILITY TO USE THE SERVICES), HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY, WHETHER UNDER THESE TERMS OR OTHERWISE ARISING IN ANY WAY IN CONNECTION WITH THE SERVICES (INCLUDING ANY OUTPUT) OR THESE TERMS AND WHETHER IN CONTRACT, STRICT LIABILITY OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) EVEN IF THE COMPANY ENTITIES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE, OR (B) FOR ANY OTHER CLAIM, DEMAND OR DAMAGES WHATSOEVER RESULTING FROM OR ARISING OUT OF OR IN CONNECTION WITH THESE TERMS, OUTPUT, OR THE DELIVERY, USE OR PERFORMANCE OF THE SERVICES OR OUTPUT.”
Perplexity disclaims all liability for any damages, including indirect, consequential, or punitive damages, arising from your use of the services.
You likely won't be able to recover any significant financial losses if Perplexity's service causes you harm.
Matches Capital One Data Breach Class Action — settled for $190M (2022)
Severity 4 · material
“THE COMPANY ENTITIES’ TOTAL LIABILITY TO YOU FOR ANY DAMAGES FINALLY AWARDED SHALL NOT EXCEED THE GREATER OF ONE HUNDRED DOLLARS ($100.00), OR THE AMOUNT YOU PAID THE COMPANY ENTITIES, IF ANY, IN THE PAST SIX (6) MONTHS FOR THE SERVICES (OR OFFERINGS PURCHASED ON THE SERVICES) GIVING RISE TO THE CLAIM.”
Perplexity's total liability to you is capped at the greater of $100 or the amount you paid them in the last six months.
If Perplexity causes you significant financial loss, your recovery is limited to a small amount.
Matches Capital One Data Breach Class Action — settled for $190M (2022)
Indemnification (1)
Severity 3 · notable
“By entering into these Terms and accessing or using the Services, you agree that you shall defend, indemnify and hold the Company Entities harmless from and against any and all claims, costs, damages, losses, liabilities and expenses (including attorneys’ fees and costs) incurred by the Company Entities arising out of or in connection with: (a) your violation or breach of any term of these Terms or any applicable law or regulation; (b) your violation of any rights of any third party; (c) your misuse of the Services; (d) Your Content; or (e) your negligence or wilful misconduct.”
You must defend Perplexity against any claims arising from your violation of terms, third-party rights, misuse of services, your content, or negligence.
You could be responsible for paying Perplexity's legal fees if they get sued because of your actions.
Matches T-Mobile Data Breach Settlement — settled for $350M (2022)
Right to silently change terms (2)
Severity 4 · material
“The updated Terms will be effective as of the time of posting, or such later date as may be specified in the updated Terms. Your continued access or use of the Services after the modifications have become effective will be deemed your acceptance of the modified Terms.”
Updated terms are effective immediately upon posting, and continuing to use the service means you accept the new terms.
Your continued use of the service implies agreement to any new terms, even if you haven't read them.
Matches Italian DPA (Garante) v. WhatsApp — settled for $6M (2022)
Severity 4 · material
“We may modify these Terms from time to time in which case we will update the “Last Revised” date at the top of these Terms. If we make changes that are material, we will use reasonable efforts to attempt to notify you, such as by e-mail and/or by placing a prominent notice on the first page of the Website. However, it is your sole responsibility to review these Terms from time to time to view any such changes.”
Perplexity can change these terms at any time, and it's your job to check for updates; they will try to notify you of material changes.
You might be bound by new terms you haven't seen if you don't regularly check for updates.
Matches Italian DPA (Garante) v. WhatsApp — settled for $6M (2022)
Methodology
SaaSGuard uses an automated pipeline: a daily Playwright crawler captures each vendor’s public Terms of Service, Privacy Policy, and DPA. Google’s Gemini 2.5 Flash classifies each clause into one of 8 risk categories with a severity score (1–5). Clauses are cross-referenced against a curated database of real lawsuits and FTC actions via embedding-based similarity matching. Grades are computed from per-category max severity; full source code is available on request.