What was once dismissed as a myth by major tech companies has now been revealed as a thriving multi-billion dollar industry. Experts have exposed how smart devices are used to eavesdrop on conversations to collect data, which is then sold to advertisers.

A leaked document from a major marketing firm confirmed that companies use smart device microphones to listen and pass the gathered data to advertisers. According to data security expert Andy LoCascio, these devices, including smart home assistants, continuously listen, even when not in active use.

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Many apps obtain microphone access through hidden clauses in their permission agreements, leaving users with no choice but to consent. Data privacy consultant Sharon Polsky highlighted that users often unknowingly agree to these terms without any option to opt-out.

Despite wiretapping laws in some states, companies can still legally collect data if users grant microphone permissions in app settings. This regulatory gap has fueled the growth of a multi-billion dollar data broker industry.