You guys might want to read this article about Google's privacy principles.
I am more inclined to believe it. Google has by far been very upfront.
  • Use information to provide our users with valuable products and services.
  • Develop products that reflect strong privacy standards and practices.
  • Make the collection of personal information transparent.
  • Give users meaningful choices to protect their privacy.
  • Be a responsible steward of the information we hold.

More here: http://googleblog.blogspot.com/2010/...rinciples.html