Carrier IQ Speaks: Our Software Ignores Your Personal Info

John Paczkowski at All Things D:

While CIQ might “listen”* to a smartphone’s keyboard, it’s listening for very specific information. Company executives insist it doesn’t log or understand keystrokes. It’s simply looking for numeric sequences that trigger a diagnostic cue within the software. If it hears that cue, it transmits diagnostics to the carrier.

Regardless, why did no one know about Carrier IQ? Why was everyone so quick to distance themselves from them? Were any laws being breached?