After a huge public outcry, Path released an apology and updated its software so you now have the ability to choose whether or not you share your contacts. They are also purging all of the information they previously collected on their servers.
What is still alarming is that ANY application you download to your iPhone or iPad has access to your address book (if that information is on your device) and could do whatever they want with your personal data. It's a scary reminder that we really do have to think twice about what we install on our phones and "smart" devices. It could impact not just our own privacy but all of the others we interact with on the internet.