From: https://www.google.com/policies/privacy/#infouse
"We may combine personal information from one service with information, including personal information, from other Google services – for example to make it easier to share things with people you know. Depending on your account settings, your activity on other sites and apps may be associated with your personal information in order to improve Google’s services and the ads delivered by Google."
Also: https://www.google.com/policies/privacy/#nosharing
"We may share non-personally identifiable information publicly and with our partners – like publishers, advertisers or connected sites. For example, we may share information publicly to show trends about the general use of our services."
I don't want to get into a "Google's creepy" discussion, as I realize that's a personal choice and a lot of people don't have a problem with it these days.
But I do. And I'd be willing to put my money where my mouth is if that were an option.
Yes. I'm working under the assumption (which may or may not be correct) that an official legal contract (and not just a privacy policy which may be enforceable as a contract depending on locale) would both require more formal acceptance (i.e. typing in your name and the date for a digital signature and a note that it's illegal to sign if you are not that person instead of just a click on a button saying "I accept"), and provide a much easier time for any individual wishing to pursue legal action against an entity that violated it (which should keep most of those violations at bay).
In other words, I see privacy policies as new, unstandardized, not taken very seriously by many companies, and possibly useless in some jurisdictions. That may or may not be accurate, as I have no legal experience.
This is not a problem unique to Google. I'm far more worried about Facebook than Google with regard to this.