In September, the controversial Neon app soared to the top five of app download charts by promising to pay users for recording and sharing their phone calls. Then it abruptly went offline. It has now quietly returned to the iOS App Store and the Google Play Store with a new version that makes it functional again.
Alex Kiam, the founder of Neon, was under scrutiny after the news site News 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, Klam said the issue would be addressed and that the app would return with a bonus for users.
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Since then, the app has resumed functioning on both Android and iOS. The company is offering users a 30-cent-per-minute rate up to $30 through 5 p.m. ET on Thursday, Nov. 6. The regular rate outside that window is unclear.
The company also compensates for referrals to the service, but has not specified what that payment will be. Previously, it said it was offering $30 for referrals.
Neon sells the recordings to companies training AI models, which are hungry for real-world input. The company says it anonymizes call information.
According to the updated terms of service from Nov. 3, those who sign up for the app agree that Neon can “sell and offer for sale” call recordings “for the purpose of developing, training, testing, and improving machine learning models, artificial intelligence tools and systems, and related technologies.”
There is still concerning language regarding Neon’s rights and licenses that grant the company the authority to publicly display, reproduce, and distribute call recordings “in any media formats and through any media channels.”
What’s changed with Neon?
Privacy experts spoke to had 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.
The biggest change with the recent relaunch of the app is that Neon now only records and pays for calls to other Neon app users, essentially making it an automatic opt-in service. Previously, there were questions about whether recording calls in some states would require notification and consent from those receiving calls from someone who has the Neon app installed.
By shifting to an app-to-app business model, Neon may be able to ease those legal concerns.
In an interview with in early October, Kiam said his New York-based company was overwhelmed by the sudden popularity of Neon, but not completely surprised.
“I expected things to grow pretty quickly because, you know, we’re giving people free money,” Kiam said. “And I think we’re getting people money for something that they would do anyway. … We felt confident that there was real demand for something like this.”
