Privacy Int'l: Google fails our privacy test. Google: test wasn't fair.

Watchdog group Privacy International has issued a report on the privacy practices of 23 internet companies. The report, the result of a six month investigation, ranks Google worst. Yes, even below — oh, heavens! — Microsoft.

Link to "A Race to the Bottom: Privacy Ranking of Internet Service Companies."
Why Google?

We are aware that the decision to place Google at the bottom of the ranking is likely to be controversial, but throughout our research we have found numerous deficiencies and hostilities in Google's approach to privacy that go well beyond those of other organizations. While a number of companies share some of these negative elements, none comes close to achieving status as an endemic threat to privacy. This is in part due to the diversity and specificity of Google's product range and the ability of the company to share extracted data between these tools, and in part it is due to Google's market dominance and the sheer size of its user base. Google's status in the ranking is also due to its aggressive use of invasive or potentially invasive technologies and techniques.

The view that Google "opens up" information through a range of attractive and advanced tools does not exempt the company from demonstrating responsible leadership in privacy. Google's increasing ability to deep-drill into the minutiae of a user's life and lifestyle choices must in our view be coupled with well defined and mature user controls and an equally mature privacy outlook. Neither of these elements has been demonstrated. Rather, we have witnessed an attitude to privacy within Google that at its most blatant is hostile, and at its most benign is ambivalent. These dynamics do not pervade other major players such as Microsoft or eBay, both of which have made notable improvements to the corporate ethos on privacy issues.

Here's a related Wired News item, here's a related AP item. Snip from that story, which includes a response from Google:

In a statement from one of its lawyers, Google said it aggressively protects its users' privacy and stands behind its track record. In its most conspicuous defense of user privacy, Google last year successfully fought a U.S. Justice Department subpoena demanding to review millions of search requests.

"We are disappointed with Privacy International's report, which is based on numerous inaccuracies and misunderstandings about our services," said Nicole Wong, Google's deputy general counsel. "It's a shame that Privacy International decided to publish its report before we had an opportunity to discuss our privacy practices with them."

Privacy International contacted Google earlier this month, but didn't receive a response, said Simon Davies, the group's director.