How is that different from the current video recording, which includes voice chat (unless disabled)

To be fair, I always disconnect my webcam and microphone when I'm not using it. :/

And when you purchased an XBOne you accepted Microsoft's conditions regarding Kinect and its recordings. Hell, it's becoming so commonplace around technology it's really frightening: accept a cut of your privacy or you don't get to access the products you bought, even if you bought them before the policy changed.

Also, this sort of reminds me when Youtube was accused by the FTC of gathering personal info on minors through their automated servers. If Sony's recordings are going to continue, I get the feeling they are going to end up stepping on the same landmine.

Its hard to get away from being tracked unless you're more tech savvy. Google/Microsoft will have been phoning home from your phone/PC for your usage data without you knowing. Never mind websites that use cookies that track your history. If you have a Facebook account you basically set a profile for yourself :P

But yeah, you can just mute your mic when you go online or not play online with others with an open mic with you shouting expletives to others lol

Whether the recordings are offline is still a crucial point that remains unanswered. 1hr of compressed audio shouldn't take up more then 1GB on the OS, so I suspect its an offline timed archive built into the OS just like screen recording. That should be the question people are  first asking. If its offline then its really not about Sony collecting your Data unless other players who you have spoken to are filing complaints about your convo.

In which case, the question then becomes whether personal audio recordings can be turned off.  "...will enable users to record their voice chats on PS5 and submit them for moderation review." So essentially people giving up the right to send evidence of a complaint by turning off their recordings, In which case it could be made visible who has audio recordings enabled and who doesn't and you can choose what chats you choose to participate in. 

These kind of measures are always good to stir up paranoia in people and have them play the weirdest scenarios in their heads.
Personally, I find this whole topic to be a huge non-issue.

Xbox was under fire for “always listening” with Kinect. I guess Sony didn’t get the memo. This goes beyond recording audio but also selling it to 3rd parties

Got my take from this guy who broke down the terms of use.

https://youtu.be/rOKTDzEv2PE

I have no issue with this , helps moderating violations .

Moderation sounds like a horrible reason for such a privacy invasion. Opt-in is OK but forced recording is not. Suddenly the built-in microphone in the DualSense doesn't seem like such a great idea. On the upside, this doesn't affect all usage of the system (at least for now).

By using that feature you agree to the new rule, meaning you can only use it if you agree with the new terms of service. It's not so simple as to just opt out.

https://www.eurogamer.net/articles/2020-10-15-the-internet-briefly-thought-their-ps4s-were-spying-on-them-and-the-memes-rolled-in

You can already record your friends voices on the PS4. I have plenty of recordings of my friends on my HDD.

Recording is done locally on user's PS5 consoles and not on PSN servers. Party voice chat recordings are submitted to SIE whenever a user submits a voice chat report from their PS5 console.

Microsoft have the exact same feature.