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The Incognito Mode Myth Has Fully Unraveled
(www.wired.com)
This is a most excellent place for technology news and articles.
To be fair, I don't think the average user would think that Google, the creator of that Incognito Mode, would keep the data.
Incognito Mode warns specifically that websites the user navigates to may still keep records, but I don't think it says anything about the creator of the browser keeping records (unless, of course, you visit their website).
I wonder if they’d be in the same trouble if they’d kept it simple by saying:
“This mode simply doesn’t keep history or cookies on the local computer.”
That would not suggest that anything is different anywhere else.