This indicates that the only entities that are kept from knowing what a user is browsing on incognito would be their family/friends who use the same device.
Chrome Incognito Mode is Almost Useless
At heart, Google might not only be a mere software developer. It is in fact a business that is motivated through advertising, which requires it to collect information about its users and their preferences in order to sell them targeted advertising.
Unfortunately, users cannot escape this surveillance just by switching to incognito. In fact, Google is paying a sum of $5 billion to resolve a class-action lawsuit filed against them, accusing the company of betraying its customers regarding the privacy assurance they support. Google is now changing its description of Incognito mode, which will make it clear that it does not really protect the user’s privacy.
Developers can get a preview of what this updated feature exactly is, by using Chrome Canary. According to MSPowerUser, the aforementioned version of Chrome displayed a disclaimer when the user went Incognito, stating:
"You’ve gone Incognito[…]Others who use this device won’t see your activity, so you can browse more privately. This won’t change how data is collected by websites you visit and the services they use, including Google."
(In the above statement, the text in bold is the new addition to the disclaimer.)
Tips for More Private Browsing
Chrome remains one of the popular browsers, even Mac users can use Safari instead. Privacy is just one of the reasons Apple fans should use Safari instead of Chrome.) However, there are certain websites that users would prefer not to get added to their Google profile which has the rest of their private information. Thus, users are recommended to switch to Safari Private Browsing, since Apple does not use Safari to track its users (it claims to).
Even better, use DuckDuckGo when you want to disconnect from the internet. This privacy-focused search engine and browser won't monitor or save the searches of its users; in fact, its entire purpose is to protect users' online privacy.