Google's new policy takes effect on March 1st, 2012. If you are totally unhappy with the direction they are going with privacy, you still have one month to grab all of your data and choose a new search engine/email/cloud/social network.
Disclaimer: I am not a lawyer and my views are simply my interpretation of information posted publicly by Google.
So what actually changed? To be fair not a whole lot. Google has consolidated more than 60 individual privacy policies into one, with the exception of a few services (Wallet, Chrome/Chrome OS and Books).
Most of the controversy surrounds Google's statements regarding their intention to share more information between Google services like search, Google+ and Gmail.
This data sharing will occur if you are currently logged into a Google account like Gmail, Google+, Youtube or any other Google services.
What options do you have for limiting the amount of information Google gathers and how they use it?
- Advertising: Personally identifiable information (PII) will not be shared with Google ad networks unless you opt-in. Non-PII is shared between Google services and its ad networks by default. You can opt-out of ad personalization using Google Ads preferences page. Don't forget there are two sections "Ads on Search and Gmail" and "Ads on the Web". There are also ad cookie plugins that will persistently block ad personalization available for Chrome and Firefox (beta).
- Streetview: Google will honor requests to blur pictures of you, your family, your car or your home. Simply find the offending image on Google Streetview and click "Report a problem".
- Web History: Google keeps track of your search terms and items you have clicked on when using Google services. You can control what information they keep, or opt-out altogether using its Web History Controls.
- Google Chat: Google keeps records of your conversations with others when using Google Chat by default. If you want to prevent them from logging your chat sessions you can go "Off the record" to disable the logging.
- Google Analytics: Many websites use Google Analytics to track usage information, page views, and anonymous browser statistics. Google have released a plugin (beta) for IE, Firefox, Chrome, Safari and Opera that will opt you out of data collection on these web pages.
- Search Personalization: Google customizes search results based upon what you click and search for. This is done whether you are signed into a Google account or not unless you have opted out.
The good news is that nearly all the information you share with Google is under your control and often has flexible options available on how that data is shared.
Another technique I have used to limit Google's ability to tie together my search results with my use of Gmail, Google+ and YouTube is to open an Incognito window (Chrome), Private Browsing (Firefox) or InPrivate Browsing (IE) when using Google services that require me to sign in.
This way I can browse in my normal browser window, not signed in, with my opt-out cookie for personalization and still access other Google services without the two browsers cross-pollinating.
If you have a Google account you can view a complete list of data Google is storing on you on the Google Dashboard page.
Google has also provided page called "Good to know" linking to their management tools, policies and other information regarding your information and how it is used.
In summary, no reason to panic. Google hasn't changed much related to its policy, but will start using more of your data than before. If you don't want to quit Google you can exercise some of the above options to retain control of how your information is used.