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Privacy Machiavellis
Chris Jay Hoofnagle has a piece up at SFGate.com on what he calls the "privacy Machiavellis," which are exemplified by Google and Facebook. (The article is adapted from a longer treatment published last year, called "Beyond Google and Evil.") Hoofnagle heads the privacy foundation set up with money collected from settlements of privacy lawsuits against Facebook. From SFGate: "... you have no way to ask Google to stop this tracking. Instead, you can merely opt out of the targeted advertising — the product recommendations. Exercising your privacy options creates a worst-case-scenario outcome: If you opt out, you are still tracked, but you do not receive the putative benefit of targeted ads. An illusory opt-out system is just one of the increasingly sophisticated sleights of hand in the privacy world. Consider Facebook's privacy options. ... Facebook can proudly proclaim that it offers ... more than 100 [choices]. Therein lies the trick; by offering too many choices, individuals are likely to choose poorly, or not at all. Facebook benefits because poor choices or paralysis leads consumers to reveal more personal information. In any case, the fault is the consumer's, because, after all, they were given a choice. Reader Kilrah_il sends word that Google has just released a tool that could alleviate some of the above worries: it stops tracking by Google Analytics for users of IE7+, Firefox 3.5+, and Chrome 4+. Perhaps Hoofnagle will comment on it here or elsewhere.
If you don't like the way Google handles privacy DON'T USE IT.
If you don't like the way Facebook handles privacy DON'T USE IT.
These companies provide valuable services for free, in exchange for tracking data that allows them to make money. There is no free ride. If you don't like the terms, don't use the service. It's that simple.
Otherwise, just give up on this mythical creature called 'Privacy'.