Palm Pre owner Joey Hess claims to have uncovered code within the phone's operating system which shows that the device is sending back information about his location to Palm.
The software developer said that log files for the handset show that his phone has been sending data back to Palm on a regular basis.
Mr Hess said that although the data was sent over a secure link, it contained information about his location, and a list of the applications installed on his handset. It showed how long he spent using those applications, and sent back crash data whenever applications unexpectedly quit.
Palm has responded to the criticism by saying that it takes the privacy of users "very seriously", and that it provided Pre owners with a way to turn the phone's features on and off.
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