As most of you have heard, Google recently revised its privacy policy and took 60 different documents associated with different products and combined them into a single document. There has been a lot of FUD and misinformation being thrown about regarding the new policies so I figured I'd post this here in case anyone is interested.
To start, the only change of substance is that the privacy policy is now identical for all Google products. This now allows for a single user sign-up for all Google services and products. This now also allows Google to use all the information they were already collecting on your account to be shared across all their entire product and service platforms (something they couldn't do before). The result is that now you get the adds you already ignore targeted a bit more closely to you, and Google products are able to recommend content a bit more targeted to you (eg, YouTube can now recommend videos and channels better targeted to your interests, so go incognito if you're searching for chubby chasing or your adds will start to reflect this).
The thing to take is that Google is not collecting any new info they didn't already collect, nor are they reselling it to third parties in a way they didn't already do it (they never sold your info to third parties, but rather search data specifically used to target adds in google products). What they are doing is gaining the ability to simplify their platform and consolidate your data across all of it. At the end of the day it is all free products and many of them do not require that you be signed in to use them, so either don't use them if you are bothered by the rule change, or don't log in if you do (yes, many Google products do not require logging in to be used).
Here is a link dispelling all the myths regarding Google's revamped privacy policy, along with supporting evidence and links explaining what you can or can't do to control your personal information:
http://googlepublicpolicy.blogspot.com/2012/02/busting-myths-about-our-approach-to.html For even deeper control of your account, permissions and data, you can access all of it through your Google Dashboard:
https://www.google.com/dashboard/Should you still want to use Google while logged in and not be targeted for adds, here are some things you can do to keep Google from targeting you more closely in adds:
This Chrome plug-in will disable google's advertising cookie in your browser, allowing you to opt out of targeted advertising:
http://www.google.com/ads/preferences/plugin/ If the plug i is not to your liking here are some instructions for you to opt out of all targeted advertising:
http://www.webpronews.com/opt-out-google-ads-2012-01 I hope that helps answer questions and puts everyone's fears to rest.