Yes.
And?
Primal's ToS is a lie, then. I'm more aware of how nostr works than most. It is things like this that really highlights how little even devs think about nostr and it's implications
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You misunstood the context of the OP. Relays can indeed see everything you do and some do collect certain info. But what primal is doing is collecting users search info which they can sell to their VC masters and possibly create a personalized list of search and trend suggestions, which is virtually identical to what platforms like Twitter, Instagram, and YouTube do.