Would you use a web phone that spies on your calls?

The New York Times [registration required] reports that Pudding Media is offering a Web phone service that will listen to your phone calls and display advertisements on your computer screen on the topic of your conversation. In exchange, your calls will be "free."

A conversation about movies, for example, will display movie reviews and ads for new films that the caller will see during the conversation. Pudding Media is working on a way to e-mail the ads and other content to the person on the other end of the call, or to show it on that person's cellphone screen.

The government currently can spy on your phone calls, your Internet activity, and your e-mail. So would you really mind Pudding Media spying on you so it can send you spam while you talk on the phone? While I can see the appeal of this strategy to advertisers, I am confident that people looking for free calls without the spying and spam will be able to do just fine using eBay's (NASDAQ: EBAY) Skype.

Why not visit Pudding Media's site and give their spymasters a piece of your mind?

Peter Cohan is president of Peter S. Cohan & Associates,. He also teaches management at Babson College and edits The Cohan Letter.