In September, the Neon app briefly became a sensation on app download charts by promising to pay users for recording and sharing their phone calls. Then it abruptly went offline amid controversy over its security practices, privacy protections and payment structure.
More than a month later, a new version has returned to the iOS App Store and the Google Play Store. However, the New York-based company isn't disclosing exactly how much it will pay users for their calls or referrals, outside of a brief bonus period. Its founder says the security issues have been resolved, but without offering much detail.
Neon sells the recordings of user calls to companies training AI models, which are hungry for real-world input, such as how people speak conversationally. The company says it anonymizes call information.
In our own tests, we were unable to get the new version of Neon to work on iOS. A screen that asks to verify a phone number for signup didn't trigger a phone call as expected.
Privacy experts CNET spoke to warned against using the app in its previous incarnation due to concerns over call consent laws, and also noted that AI could infer user information or identities even if call data is anonymized.
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What's changed with the Neon app?
Shortly after Neon soared on the app store charts, the news site TechCrunch discovered a security flaw that allowed people to access calls from other users, including transcripts and metadata about the calls. After the app went dark, Neon founder Alex Kiam said that the company would address the issue and that the app would return with a bonus for users.
At that time, those using the app could call anyone and be paid. According to the company, only the app user's side of the call was sold, since in some states, it's not legal to record a conversation without permission.
The new version is trying to skirt those state issues with a new app-to-app setup: Both parties to the call must have the Neon app installed, essentially making it an opt-in service. Only calls from one Neon user to another Neon user are paid, meaning both people on the call have signed up with the company.
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