[iam]

Have you tried turning off Contacts synchronization in Settings > Accounts ?

[thaumasiotes]

Yep, but I still get the message.

[iam]

That sounds like it could be a bug, you should consider filing it on https://code.google.com/p/android

[blueskin_]

Install Titanium Backup and uninstall or freeze 'Google Contacts Sync'. Private contacts live!