AGCM Italy Launches Consultation on Perplexity AI's Terms as Potentially Unfair

Italy's Autorità Garante della Concorrenza e del Mercato (AGCM) has opened public consultation over clauses within Perplexity AI, Inc.'s Italian-language Terms of Service. The review, announced 21 May 2026 under proceeding PS13123, examines whether specific contractual terms may create a significant imbalance to the detriment of consumers per Article 33 of the Italian Consumer Code. Stakeholders have thirty days from publication to submit written feedback.

Focus of the AGCM Review: Unfair Terms in Perplexity AI's Contract

The AGCM is evaluating several provisions in Perplexity AI, Inc.'s Terms of Service (Italian version, updated 23 January 2026), as applicable to both web and mobile app users in Italy. The investigation targets clauses regarding payment obligations, liability exclusions, arbitration, and account termination. The regulator's announcement highlights these terms as potentially unfair contractual clauses under the Italian Consumer Code.

Key Clauses Under Scrutiny

Among the primary clauses cited in the AGCM's procedural note:

• Subscription and payment conditions: Users must pay all fees and taxes in US dollars for paid services. Recurring subscription charges may be applied automatically to stored payment methods. Perplexity AI reserves the right to adjust subscription plans or pricing at its sole discretion, with any price changes communicated as deemed reasonably practicable.
• Service availability and accuracy: The company can revise the availability, features, and pricing of its services at any time. It does not guarantee the accuracy or reliability of offer descriptions; updates to prices and errors may be corrected or orders cancelled immediately.
• Liability exclusions and limitations: The Terms include broad disclaimers of warranties and limits on liability, including for indirect or consequential damages. Total monetary liability is capped at the higher of $100 or the amount paid by the user in the preceding six months.
• Indemnification: Users agree to indemnify and defend Perplexity AI and its affiliates against claims or losses arising from the user's breach, misuse, or content uploaded via the service.
• Arbitration and waiver of class actions: Any claim connected to the service must be resolved via binding arbitration, prohibiting collective or class action proceedings. Users can opt out of arbitration within 30 days of first registration but cannot opt out solely of the class action waiver.
• Account termination: The company may suspend or delete user accounts, with or without notice, for any reason, including suspected breach of the Terms. Upon account deletion, any user content may be deleted at the company’s discretion.
• Jurisdiction and governing law: The Terms specify governance under California law, with arbitration in line with JAMS rules and court jurisdiction in San Francisco where applicable.

"The above clauses, in themselves, in connection with each other and/or in the context of the entire contractual module, appear to be unfair pursuant to Article 33...as they result in a significant imbalance of the consumer’s rights and obligations arising from the contract," states the AGCM memorandum.

Legal Backdrop: Article 33 of the Consumer Code and AGCM Consultation Procedure

The AGCM’s review draws explicitly on Article 33, paragraphs 1 and 2, of Italy’s Consumer Code (legislative decree 206/2005), covering contract terms considered unfair if they unduly restrict consumer rights or create an excessive advantage for businesses.

The clauses being assessed may relate to areas including payment, disclaimer of liability, indemnification, changes to contract terms, and dispute resolution. The AGCM’s decision to initiate public consultation follows its instruction as per article 7(1) of the Regulation on Investigative Procedures for Consumer Protection and Misleading and Comparative Advertising (November 2024 resolution 31356).

The economic sector concerned is the provision of artificial intelligence services for Italian end-users. Perplexity AI, Inc. is named as the subject of the proceedings.

Stakeholder Participation: Criteria and Mechanisms

Nationally representative trade associations, chambers of commerce, and consumer associations recognised and listed under Article 137 of the Consumer Code are eligible to join the consultation process. Participants must demonstrate direct interest or sector experience relevant to the Terms being evaluated.

Written contributions can be submitted within 30 days of the AGCM notice. Comments should be sent to the dedicated email address ([email protected]) and must include participant credentials and a statement of interest. Submissions deemed to contain confidential information should also provide a non-confidential version for regulatory use. All commentaries will be considered as part of case PS13123 but will not be published.

AGCM urges interested parties to supply factual information, experience, or observations relating to the fairness of the specified contractual clauses to inform the authority’s review.

What the Procedural Review Could Mean for Online AI Service Providers

The AGCM’s ongoing scrutiny provides a compliance reference point for other AI and digital service vendors operating in Italy. The authority’s approach reflects current European regulatory priorities regarding consumer contract fairness, particularly for emerging technology platforms. Any formal findings or obligations deriving from the consultation could affect standard contract drafting for digital services with Italian users, especially concerning liability, pricing, and dispute resolution.

For operators offering digital content or AI services, tracking developments in AGCM’s proceedings—and ensuring their own terms are consistent with EU and Italian consumer protection law—may mitigate future regulatory risks. For further developments on digital regulation in Italy and Europe, see our regulation and b2b coverage.