Catchy title, huh? I had a grain of skepticism when our priest talked about that, though he did have an article he got it from. Still, it sounded like paranoia could be inferred from the article. In the beginning of the movie, they say that the government may be listening to your conversation (esp. if you’re an active pro-lifer, thanks to the Clinton administration and probably future thanks to Obama’s, or mobster–my edit). They may or may not be able to use your sacramental confession in court, but they can set you up.
That’s not the biggest concern. It could break the seal of Holy Confession. Like the movie said (the movie came around a year or so after the sermon), our priest said that the only way to prevent being heard by the government, when you care, is to take out the battery.