Is Google's Phone watching you?

The new Google phone, dubbed the G1, has been touted as a working man's smartphone — a cheap, Web-friendly wireless device that can make life easier for millions of consumers. The G1, as it turns out, also stands to make life a whole lot easier for Google — by making it a snap to track your movements on the mobile Web and send you ads as it does on the desktop. The device, sold exclusively by T-Mobile, gives Google access to your e-mail, instant messages, contact lists, Web-search history and geographic location. By keeping tabs on your mobile life, Google can quickly figure out what sort of ads to send your way, and when. "It's like a walking surveillance device," says Jeffrey Chester, executive director of the Center for Digital Democracy, a consumer watchdog group.