Neon, a new social networking application, has surged in popularity almost overnight. It has since climbed to become the No. 2 app in the Apple U.S. App Store’s Social Networking category. This is on the heels of a huge increase from its last position at No. 476. Just weeks ago, on September 18, it was still in that spot. According to app intelligence firm Appfigures, that means Neon made it up to No. 10 by the end of yesterday. Yet, it soared up to its present place on Wednesday, showing an astonishing surge in user involvement.
Neon is gaining tremendous momentum among developers. Combined with its unique business model, this makes it one of the most powerful money-making tools at users’ disposal. The app claims that individuals can earn “hundreds or even thousands of dollars per year” by participating in its service. Neon incentivizes usage into its ecosystem by rewarding users with 30 cents a minute for calls placed between platform users. Plus, you can get paid up to $30 a day for transcribing calls taken for anyone off of the platform.
Neon’s business practices should deeply concern anyone who cares about user privacy and data security. The app’s terms of service give it sweeping rights to user data. Included is the ability to listen in on conversations. In our case, these audio calls are recorded but only capture one side of the conversation. We think this is a clever strategic play. It’s instrumental in helping clients understand wiretap laws that often require consent from both members of a conversation.
Jennifer Daniels, a partner at Blank Rome’s Privacy, Security & Data Protection Group, noted, “Recording only one side of the phone call is aimed at avoiding wiretap laws.” She further explained that under many states’ laws, consent from both parties is necessary for recording conversations, describing Neon’s approach as “an interesting approach.”
The ramifications of Neon’s practices go far beyond privacy violations. Peter Jackson, cybersecurity and privacy attorney at Greenberg Glusker, cautions that the misuse of recorded voice data poses significant threats to certain communities. He stated, “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.”
In fact, Neon’s marketing is largely predicated on the notion that its software can drastically improve productivity. The effect of its operations might not be immediately clear to users. Jackson highlighted how the vast majority of productivity tools focus on increasing efficiency without considering the impact on privacy. He remarked, “There is a tremendous desire on the part of, certainly, knowledge workers — and frankly, everybody — to make it as easy as possible to do your job.”
Neon’s rapid growth trajectory has been notable. As of Wednesday morning, it was the No. 6 overall app. This helped propel it to No. 7 overall for apps and games combined. Such a jump in user acquisition and engagement is nothing short of miraculous. This jump begs the question of what’s behind this increase.
Alex Kiam, the founder of the app, operates Neon out of his New York City apartment. This configuration continues to highlight the startup’s collaborative spirit, even as the billboards get bigger.
Neon’s terms reflect an extensive license regarding user recordings: “worldwide, exclusive, irrevocable, transferable, royalty-free, fully paid right and license (with the right to sublicense through multiple tiers) to sell, use, host, store… distribute your Recordings, in whole or in part.” This sweeping license gives Neon great leeway to control user-generated content.
As Neon grows evermore successful as one of the most popular social apps around, increased scrutiny on its practices comes with the territory. Markets force users to consider the costs of lost earnings. They weigh the privacy risks associated with their participation in the platform.
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