Is Your Smartphone Listening?

Have you ever noticed your smartphone showing ads for something you just discussed with someone? Almost as if your phone is listening to you? Sometimes it feels convenient, but it can also be intrusive and unsettling, leaving you with a lingering discomfort.

So, is your smartphone really listening?
We can’t answer for your specific device, but companies are increasingly relying on active listening software to monitor conversations via smartphone microphones and serve targeted ads. How does this technology work, what risks does it pose, and how can you protect yourself? Here’s what we found.

What Are Active Listening Ads?

The term “active listening” originates from communication science and describes a method of focused listening, where the listener consciously pays full attention to the speaker to truly understand the message rather than just passively hearing it. This technique aims to foster deeper understanding and even prevent conflicts.

Active listening software, however, is a technological adaptation that captures and analyzes conversations through microphones on smartphones, laptops, and other devices. Unlike voice assistants like Siri or Alexa that only respond to activation words, active listening is always on, filtering out content that can be used for advertising purposes.

Originally developed for features like voice commands or machine learning, the technology’s potential for personalized advertising quickly became apparent, sparking intense debates over privacy and data protection.

A Leak: How Companies Use Conversations for Ads

Is this just a sci-fi concept, or are we already living in such a world?
The truth is, it’s happening – and on a larger scale than you might think.

In late 2023, the online platform 404 Media revealed a leaked pitch deck from the Cox Media Group (CMG). It demonstrated how conversations near smartphones were being used to optimize ad targeting. Known as Predictive Audience Technology, the system combined voice data with behavioral data, such as search queries or website visits, to create detailed user profiles.

The pitch deck named Google, Facebook, and Amazon as partner companies, although they distanced themselves from this practice after the leak. The AI-powered technology analyzed the collected data to further personalize and refine ad targeting.

This example highlights how advanced AI models can process real-time conversations to generate ad targeting options for advertisers. However, many questions remain unanswered – for instance, whether the software activates only when the microphone is in use or if it runs constantly in the background.

Google promptly removed CMG from its partner program, stating:
“All advertisers must comply with applicable laws, regulations, and our Google Ads policies. If we identify ads or advertisers that violate these policies, we will take appropriate action.”

Amazon also clarified to online magazines like TECHBOOK that it was never involved in this program and has no plans to engage in such practices.

CMG publicly responded, asserting they had "never eavesdropped on conversations or accessed anything beyond aggregated, anonymized, and fully encrypted third-party datasets permitted for ad targeting." They also emphasized using data only with users' explicit consent.

Why Active Listening Is Problematic

The concerns surrounding active listening ads are obvious, but here’s a summary of why this practice raises serious issues:

1. Invasion of Privacy

Devices that continuously listen can capture sensitive information, such as discussions about finances or personal relationships. This data can be exploited by advertisers and, in cases of security breaches, by malicious actors.

2. Data Manipulation

Ads based on conversations can influence purchasing decisions without users realizing it, raising ethical concerns about manipulation.

3. Security Risks

Storing and transmitting audio data increases the risk of cyberattacks. Hackers could potentially gain access to private conversations.

4. User Unawareness

Many people are unaware their devices may be listening, as microphone permissions are often granted unnoticed during app installation. While current laws require user consent for using data in advertising, this isn’t always transparent.

Legal Situation in Germany

Is it even legal for companies to do this?

Unfortunately, such practices can occur regardless of legality. However, it’s important to understand the legal framework in Germany.

Secretly listening to conversations under the guise of terms and conditions (T&Cs) is not allowed. As one expert explained - we quote an online magazine here:
“Beyond the fact that the T&Cs are not the appropriate place for such information – the privacy policy is – there are significant legal concerns. Eavesdropping on personal conversations for commercial purposes, especially when analyzed by AI, constitutes a severe intrusion into both privacy and, in some cases, intimacy.”

Sensitive information, such as sexuality, political beliefs, or health status, is often involved – and for such data, a company’s “legitimate interest,” often cited for advertising, does not apply.

While active listening ads might be permissible with explicit consent, this consent cannot be implied or hidden in fine print. Instead, users must be clearly, visibly, and understandably informed about whether and how conversations are being recorded. Furthermore, additional information must be easily accessible and transparent.

Summary

Yes, your smartphone can listen to you – but it shouldn’t. If you want to protect yourself, regularly review your device settings to see which apps have microphone access and revoke permissions for unnecessary ones. Some smartphones display a microphone icon when an app is actively using it, helping you identify suspicious activity.

For more articles, check out the F7 Blog.