Appeals court temporarily pauses order blocking Perplexity’s AI shopping agent on Amazon
A federal appeals court has temporarily put on hold a California judge’s order that would have blocked Perplexity AI from using an AI-powered shopping agent on Amazon, as the case moves forward in a dispute over who controls automated activity inside customer accounts.
The Ninth U.S. Circuit Court of Appeals on Monday granted Perplexity an administrative stay, pausing the injunction while the court considers the company’s request for a longer pause during its appeal. The lower-court order had been set to take effect within days.
Amazon sued Perplexity in November, alleging the startup’s Comet browser and associated AI agent accessed password-protected portions of Amazon customer accounts without Amazon’s authorization, even when users allowed the tool to act for them. Amazon also accused Perplexity of disguising automated activity as human browsing and of ignoring repeated demands to stop.
U.S. District Judge Maxine Chesney in San Francisco granted Amazon’s request for a preliminary injunction on March 9. She wrote that Amazon was likely to succeed on claims under the federal Computer Fraud and Abuse Act and California’s Comprehensive Computer Data Access and Fraud Act. Chesney said Amazon had provided strong evidence that Perplexity accessed accounts “with the Amazon user’s permission but without authorization by Amazon.”
Chesney’s order required Perplexity to prohibit Comet from accessing or attempting to access Amazon user accounts, and to delete Amazon accounts and customer data it collected. Chesney also cited Amazon’s evidence of response costs, including employee time spent developing tools to block Comet and detect future access, writing that the company incurred more than the threshold amount often used to support computer-fraud claims.
Perplexity argues the activity is lawful because users authorized the AI agent to make purchases and navigate the site on their behalf. In seeking a pause, the company said blocking its product from one of the internet’s largest shopping sites would cause “devastating harm” to the business and to consumers.
A Perplexity spokesperson told CyberScoop Tuesday the company would continue to fight for “people’s right to choose their own AI.” Amazon declined to comment.
The case underscores issues with “agentic” AI tools that move from answering questions to initiating transactions. Courts are being asked to weigh user permission against platform authorization, and to decide whether automated representatives must follow platform rules designed to limit undisclosed bots in sensitive account areas.
