Had a discussion with both AT&T and LG about this Carrier IQ issue.
Response from AT&T. You need to speak with LG because they are the ones that put the Android system into the phone.
Response from LG:
11:41 AM Victor: Hello **************. Welcome to LG Electronics U.S.A. Support only. How may I provide you with excellent service today?
11:42 AM **************: How do I get rid of Carrier IQ on my phone?
11:43 AM Victor: To verify, are you inquiring about an application that came with the phone?
11:44 AM **************: Yes. The application that is hard coded into the Android software that can not be disabled or opted out of unless the phone is rooted.
11:45 AM Victor: Sorry about that, unfortunately pre-installed applications cannot be removed by default.
11:46 AM **************: So when is LG going to update the option to opt out of participing in the carrier IQ system? It is not my intention to allow you or at&t to monitor all of my activities simply because I chose the LG G2 as the phone that I wanted....
11:47 AM Victor: As of this concern, the applications and features that the phone comes with are installed and determined by the carrier of the phone. You can try contacting them to see if they are able to remove it from the phone.
11:49 AM **************: They told me to contact you for resolution to this problem after I spent 1 1/2 hours on the phone with them.
11:49 AM **************: This is not an application or feature. This is tracking software.
11:49 AM Victor: Sorry about that, unfortunately pre-installed applications cannot be removed from the phone by default.
11:49 AM Victor: I really apologize that you are having this problem.
11:50 AM **************: It is no problem. I will just return the phone and LG has lost me as a customer for life.
11:50 AM Victor: I understand.
11:50 AM Victor: I am sorry to hear about this.
11:53 AM **************: This is unbelieveable that LG in cahoots with AT&T installed this tracking software that tracks every location that I go, every key stroke that I make, and every contact that I have, including my text messaging with no way to opt of this. Have you guys ever heard of the Constitution????
11:54 AM Victor: I really apologize for the inconvenience. I can transfer you to a supervisor for further information.
11:55 AM Notice: Victor transferred ************** to John.
11:55 AM Notice: John has joined the chat session.
11:55 AM Notice: Victor has exited the chat session.
11:55 AM **************: The information that I need is "how to disable Carrier IQ" on my phone.....
11:56 AM John: Sorry but unfortunately that application cannot be removed
11:57 AM **************: Too bad. Nice phone but now it is a POS and I will be returning it to AT&T for a different phone. I wonder how come Motorola Moto X that my wife just got with the same carrier does not have Carrier IQ but my phone does...
So there you have it, AT&T denies that it is their issue and LG says "too bad sooo sad". It appears to be an LG issue. If it was an AT&T issue, I am guessing that they would have it installed on all of their new phones. So unless you want to root your phone, you are going to be stuck with Carrier IQ either until AT&T or LG are sued for invasion of privacy under the "wire tap" laws.
So now I have to decide whether to root my phone or return it under the 14 days. I have until Thursday. It is too bad, this is a new phone for me and I was really excited about having a smart phone but I did not realize that "smart phone" meant "no privacy phone", "spyware phone", or "trap every key stroke phone". I really really liked the LG G2.....