Big brother: Company to listen in on phone calls to target ads

Imagine having a hot late-night phone conversation with your lover -- and then seeing an ad on your computer for condoms, or perhaps even Cool-Whip, if you're the kinky type.

That seems to be the idea of Pudding Media, a start-up company providing a Skype-like internet phone service with a twist: There are no toll charges, but Pudding will listen in on your calls and display ads on your computer related to the stuff you talk about. However, Pudding's voice recognition software screens out dirty words.

According to The New York Times, "The company's model, of course, raises questions about the line between target advertising and violation of privacy. Consumer-brand companies are increasingly trying to use data about people to deliver different ads to them based on their demographics and behavior online."

But it's the consumers choice. If you're concerned about your privacy, don't use Pudding! I'm sure lots of Americans will be happy to trade a little bit of privacy for free phone calls and, if Pudding can find a way to adequately monetize the service, this idea could take off.