The call-recording app Neon has quietly relaunched on both the iOS App Store and Google Play Store, just over a month after abruptly disappearing amid serious security flaws and privacy debates. The app promises to pay users for sharing their phone calls, a concept that initially drove rapid downloads but quickly raised red flags among experts. Neon’s founder, Alex Kiam, claims the underlying issues have been fixed, though details remain vague.
How Neon Works and Why It Matters
Neon’s business model revolves around selling recorded conversations to companies developing AI models. These models require real-world speech data for training, creating a demand for authentic, conversational audio. While Neon states it anonymizes the data, privacy advocates warn that AI can still infer user identities or sensitive information even from anonymized call recordings.
This matters because laws around call recording vary significantly by state. Some regions require all parties to consent before a conversation is recorded, while others only require one-party consent. Neon’s initial iteration was criticized for potentially violating these laws, as users could record calls without the other party’s knowledge.
The Fix: Opt-In Calls Only
To address legal concerns, Neon’s new version requires both participants to have the app installed. Payments are now limited to calls between Neon users, effectively making it an opt-in service. The payout structure starts at 20 cents per minute for the first 20 minutes daily, capped at $4. Referrals offer additional earning potential, though user complaints on app stores suggest rates have already dropped to as low as $1 for referrals and 5 cents per minute for calls.
The earning potential is heavily skewed towards incentivizing user recruitment. The app’s long-term viability depends on consistent user growth, raising questions about whether the payouts will remain sustainable.
Security Concerns Remain
Kiam claims Neon engaged three cybersecurity firms and hired a former CTO from a “reasonably large tech company” to address the initial security vulnerabilities. However, the specifics of these fixes remain undisclosed. The app’s terms of service still grant Neon broad rights to sell, reproduce, and distribute recordings “in any media formats,” leaving users with limited control over their data.
The delay in returning to iOS was not intentional, Kiam stated, emphasizing the company’s commitment to security despite the previous breach. Neon has also lifted its $30 daily payout limit, but the lack of transparency about data handling and payment fluctuations continues to fuel user skepticism.
The Bigger Picture: AI Demand and User Trade-Offs
Neon’s resurgence highlights the growing demand for training data in the AI industry. Companies are willing to pay for real-world conversations, creating an incentive for users to trade their privacy for small financial gains. The app’s appeal is understandable given current economic pressures, but the long-term risks of surrendering call recordings remain significant.
The ethical implications of monetizing personal conversations are clear. Users must weigh the potential earnings against the possibility of data misuse and the erosion of privacy. Neon’s second attempt underscores the tension between technological innovation, financial incentives, and the protection of individual rights.
