Neon, the No. 2 social app on the Apple App Store, pays users to record their phone calls and sells data to AI firms

A new app has surged to prominence in the Apple App Store, ranking as the second most popular social networking application. Neon Mobile offers users the chance to record their phone calls and receive compensation for the audio, which is then sold to artificial intelligence companies. Promising potential earnings of hundreds or even thousands of dollars annually, Neon claims to pay users 30 cents per minute for calls made to other Neon users, with a cap of $30 per day for calls to non-users. Additionally, users can earn money through referrals. Since its launch, Neon has made a remarkable leap in popularity, moving from position 476 to 10 in the U.S. App Store's social networking category within a week. By Wednesday, it had climbed to the second spot among free social apps and was also ranked seventh overall. However, the app's terms of service raise significant concerns regarding privacy, as it states that it can capture both inbound and outbound phone calls. While Neon advertises that it records only one side of the conversation unless both parties are users, this practice invites scrutiny over potential legal implications and privacy violations. The information obtained through these recordings is sold to AI companies for developing and refining machine learning models and related technologies. This raises alarm bells about the extent to which personal data is commodified, especially given the broad licensing rights Neon grants itself in its terms. Users may be unknowingly providing more access to their data than they intend, leading to a slippery slope of privacy erosion. Legal experts express concern, noting that recording one side of a conversation may circumvent wiretap laws in various states, which typically require consent from both participants. They caution that while the app claims to anonymize data by stripping out personal information, the potential for misuse remains high. Voice data could be exploited for fraudulent activities, such as creating deepfake calls that impersonate individuals. Neon's founder, Alex Kiam, operates the app from his New York residence and has previously attracted funding from investors. However, he has not responded to inquiries regarding the app's operations or privacy practices. As data collection practices evolve, users increasingly grapple with the trade-off between convenience and privacy. The rise of Neon illustrates a growing acceptance among some users to monetize their personal data, often without fully understanding the implications. In a world where data privacy concerns loom large, the allure of quick financial rewards from apps like Neon may lead individuals to overlook the potential risks associated with sharing sensitive information. As these trends continue, the dialogue around privacy, consent, and the ethical use of personal data will only intensify.