The Italian AGCM Opens Consultation on Perplexity AI Clauses: Possible Contractual Abuses

The Autorità Garante della Concorrenza e del Mercato (AGCM) has announced the opening of a public consultation regarding various contractual clauses present in the Terms of Service of Perplexity AI, Inc. The case PS13123, initiated on May 21, 2026, will evaluate whether these conditions create a significant imbalance to the detriment of consumers, as established in Article 33 of the Consumer Code of Italy. Interested parties can submit their written contributions within 30 days from the publication of the announcement.

Clauses Under Review in the Terms of Service of Perplexity AI

The AGCM is analyzing key clauses from the Terms of Service updated as of January 23, 2026, which are available on both the website and mobile application of Perplexity AI. These clauses affect various aspects of the contractual relationship, focusing on:

• Payment services and collection methods
• Unilateral modifications of prices, availability, and product features
• Broad exclusions and limitations of liability
• Mandatory arbitration agreements and waivers of class actions
• Grounds for account termination and licenses

Details on the Payment Services and Prices Clause

Perplexity AI states that some services are free and others are paid, charged in United States dollars. Subscriptions can be made via credit card, debit card, or other available means. The company reserves the right to modify prices and service conditions at any time, with reasonable prior notice, except in specific cases stated in the Terms. Any failure in payment results in suspension of access to paid services.

Exclusion and Limitation of Liability

Broad clauses stand out where the company disclaims all warranties, express or implied, regarding the integrity, accuracy, security, or availability of services. Compensation is limited to a maximum of 100 United States dollars or the amount paid in the previous six months, whichever is greater. Accepting the Terms means waiving Perplexity AI from any claims arising from misuse of services or infringement of third-party rights.

“Access and use of the Services is the sole responsibility of the user. Perplexity AI excludes all warranties and conditions, express or implied, including merchantability and fitness for a particular purpose,” — according to the Terms.

Mandatory Arbitration and Waiver of Class Actions in the Terms of Perplexity AI

The agreement imposes that any disputes must be resolved through binding arbitration, in English and under the rules of JAMS in the United States. Both parties waive the right to bring class action lawsuits or be part of them, except for certain exceptions related to individual small claims, injunctive relief, or intellectual property rights. Users have a period of 30 days from their first registration to opt out of the arbitration clause voluntarily.

• Arbitration covers all disputes related to services and products.
• Class actions are not permitted unless required by law or unless the waiver is prohibited.
• Arbitration fees and costs will follow JAMS rules, with adjustments if they become prohibitively expensive for the consumer.

Evaluation for Presumed Contractual Imbalance According to the Consumer Code

The AGCM considers clauses that, alone or collectively, may create an imbalance of rights and obligations to be binding to the detriment of the consumer. Various sections of Article 33 are invoked, covering unilateral powers to modify conditions, limitations of liability, and mandatory arbitration.

The mentioned clauses include the automatic termination of licenses and accounts for breach of the Terms, exclusion of liability for content removal, and the company's authority to transfer contracts without reciprocal possibility for the user.

Participation of Associations and Deadlines for Case PS13123

According to the Regulation on procedures for consumer protection and misleading advertising, the following can participate in the consultation:

• National professional associations and chambers of commerce
• Recognized and registered consumer associations according to Article 137 of the Code

Interested parties must send their written contribution to the specific email address indicated by the AGCM in the announcement, specifying their representation and sector accreditation. Comments will not be made public, but can be used in the analysis of case PS13123. When confidentiality elements exist, a non-confidential version of the comment should be provided.

In the documentation submitted, the AGCM requests practical information, prior experience, and observations on the contractual provisions under review, useful for assessing their potentially abusive nature under Italian regulations.

Context: The Importance of Contractual Terms in Artificial Intelligence Services

The artificial intelligence sector, due to its innovative nature and growing presence in the digital economy, has been subject to special scrutiny by competition and consumer protection authorities. Contractual conditions form the legal framework of interaction between users and technologically advanced providers, which is why their technical and legal analysis is essential for the development of the sector.

The procedure initiated by the AGCM and the resulting consultation set an additional precedent for international companies offering advanced services, including gaming and digital platforms, regarding transparency obligations and legal balances with their users.