Neon Pays Users To Record Their Phone Calls, Sell Data To AI Firms

Neon Mobile, now the No. 2 social networking app in Apple's U.S. App Store, pays users up to $30 per day to record their phone calls and sell the data to AI companies. The app claims to only capture one side of a call unless both parties use Neon, but its terms grant sweeping rights over recordings. TechCrunch reports: The app, Neon Mobile, pitches itself as a money-making tool offering 'hundreds or even thousands of dollars per year' for access to your audio conversations. Neon's website says the company pays 30 cents per minute when you call other Neon users and up to $30 per day maximum for making calls to anyone else. The app also pays for referrals.

According to Neon's terms of service, the company's mobile app can capture users' inbound and outbound phone calls. However, Neon's marketing claims to only record your side of the call unless it's with another Neon user. That data is being sold to 'AI companies,' the company's terms of service state, 'for the purpose of developing, training, testing, and improving machine learning models, artificial intelligence tools and systems, and related technologies.'

Despite what Neon's privacy policy says, its terms include a very broad license to its user data, where Neon grants itself a: '...worldwide, exclusive, irrevocable, transferable, royalty-free, fully paid right and license (with the right to sublicense through multiple tiers) to sell, use, host, store, transfer, publicly display, publicly perform (including by means of a digital audio transmission), communicate to the public, reproduce, modify for the purpose of formatting for display, create derivative works as authorized in these Terms, and distribute your Recordings, in whole or in part, in any media formats and through any media channels, in each instance whether now known or hereafter developed.' That leaves plenty of wiggle room for Neon to do more with users' data than it claims. The terms also include an extensive section on beta features, which have no warranty and may have all sorts of issues and bugs. Peter Jackson, cybersecurity and privacy attorney at Greenberg Glusker, told TechCrunch: 'Once your voice is over there, it can be used for fraud. Now, this company has your phone number and essentially enough information -- they have recordings of your voice, which could be used to create an impersonation of you and do all sorts of fraud.'

Read more of this story at Slashdot.