It's all above board though, as you, the user, agreed to the terms & conditions for installing said app.
This won't change unless governments create and enforce laws.
It is, though. Why should I not be able to agree, with sufficiently informed consent, to route traffic through a connection I operate via a computer I own using software I've chosen of my own free will to install?
What's the difference between running a Tor exit node and a "residential proxy" except optics?
Look: I'm 100% for banning secret proxies that hide from the user, but stopping people knowingly and voluntarily running these proxies is a violation of fundamental software freedom tenets.
Terms and conditions are not the get out of consumer protections free card that you think it is.