[elephant007]

As said before, iPhone does the same thing. When you get an app for no monetary cost you're going to be paying for it via giving information, most likely. Even paid for apps most likely still track things you do on your phone... really it's no different than using the internet, you don't think there are such things as tracking cookies? Run some anti-spyware and it'll point out tracking cookies.

Even paid apps, as I said, access things such as network and gps location. Adware is nothing new to the technology industry. If you'd rather not be tracked or have ads thrown your way, I suggest to totally unplug from any internet based device.

Bored, thank you for pointing this out for users that are new to Android. I think though that no matter which smartphone you use, you will still be in the same situation (iPhone, WinMo, Android, Blackberry, etc...)

Edit:
SPAM is unsolicited ads/emails
Since we are agreeing to the terms of use by installing the free/paid software, we are in essence agreeing to receive the adds we see. So since we agree to receive ads in order to receive free apps, this means the ads aren't SPAM.