Google has decided to update their privacy policies across all of their products, and condense them into a single policy. This updated document will better clarify how users information is stored and treated within their different services and products. Yes, this not only includes their web based services, but Android OS as well. Anywhere you login to your Google Account, this new policy will most likely apply.
Their Terms of Service will also see an overhaul as well. Instead of seeing a long boring set of legal documentation, it will be reformatted as an easy read for the average user. It has already been written, and will be effective March 1, 2012. These updates will hopefully spur other companies to follow suit. Why shouldn't the average user be able to easily read what he/she is agreeing to? Sure it helps to know lawyer-speak, but it shouldn't be a requirement.
The YouTube clip Google provided is a perfect example of how and when Google shares the information stored in your Google Account. Having over 60 services with different policies could confuse anyone - especially when the services are so tightly tied together. It will also be nice to know that from here moving forward, a change to their new universal policy will be easier to spot.
[via Official Google Blog]