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Perplexity Amazon appeal lifts ban on AI shopping tool

A federal appeals court overturned Amazon’s temporary ban on Perplexity’s Comet, but the underlying lawsuit remains unresolved.

Dev Ramirez

By Dev Ramirez · Crypto Correspondent

· 3 min read

Perplexity Amazon appeal lifts ban on AI shopping tool
Photo: Decrypt

The Perplexity Amazon appeal has produced an early win for the AI startup: the Ninth U.S. Circuit Court of Appeals on Aug. 4 overturned a temporary court order that had stopped Perplexity’s shopping tools from operating on Amazon. For investors watching AI agents, the decision addresses a core question: whether software acting at a user’s direction can access a platform through that user’s account.

The ruling does not end Amazon’s lawsuit. It removes a preliminary restriction while the case continues, and it does not decide damages or the final legal merits.

What did the Ninth Circuit decide in the Perplexity Amazon appeal?

The appeals court concluded that Amazon was unlikely to win, at this stage, on its claim under the Computer Fraud and Abuse Act, or CFAA. That federal law prohibits certain unauthorized access to computers.

According to Reuters, the court sided with Perplexity’s argument that Amazon users were the parties accessing Amazon when they used its agent, rather than Perplexity itself. Perplexity’s Comet browser and related AI tool can browse sites, sign into users’ shopping accounts and place orders for them.

An AI agent is software designed to carry out multi-step tasks with limited human oversight. In this dispute, the legal issue is whether the customer’s permission to use an Amazon account also covers a tool the customer directs to use it. The appellate ruling addresses Amazon’s CFAA theory in the preliminary-injunction fight; it does not establish that every AI agent may access every online service.

How the dispute reached the appeals court

Amazon sued Perplexity in November 2025. The company alleged that Comet and its associated agent entered private Amazon customer accounts without authorization, presented automated activity as human browsing and created risks for customer data, Reuters reported.

Perplexity denied wrongdoing. It said Comet operated with its users’ permission, including credentials stored on those users’ own devices, according to a Yahoo-hosted report from Decrypt.

On March 10, U.S. District Judge Maxine Chesney granted Amazon a preliminary injunction. She found that Amazon had presented strong evidence that Perplexity’s tool accessed Amazon systems illegally, Reuters reported. The order temporarily blocked the tool from Amazon while the litigation proceeded, and Perplexity appealed.

The Ninth Circuit’s Aug. 4 decision overturned that restraint. Reuters described it as the first federal appellate ruling to address whether AI agents working for users can legally access online platforms.

What remains unresolved

The case, Amazon.com Services LLC v. Perplexity AI Inc., remains active in federal court in Northern California. The appellate court’s decision means Amazon did not meet the required showing for a preliminary injunction on the CFAA claim, based on the reported ruling. It is not a final verdict on Amazon’s other allegations or on the overall lawsuit.

Amazon said it disagreed with the decision, remained confident in its case and was considering its next steps, Reuters reported. Perplexity said it would continue to defend users’ ability to choose AI tools.

For companies building agents that can search, shop and complete transactions, the decision offers a meaningful legal signal. The eventual outcome will still depend on the remaining claims and further court proceedings.

This story draws on original reporting from Decrypt.

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