New iOS app tricks users into proxying all web traffic for ads

spac writes: AllthingsD has an interesting story about how a startup, Wajam requires users of their service to download a script that sets up a proxy to handle all network requests for the purpose of providing "Social Recommendations" within built-in apps. The privacy implications of using this profile script to users isn't clearly presented to users. Are we really to trust our data into the hands of a company founded by a man who comes from the world of browser toolbars? And for social search?!