Of course not. One of the reasons why this kind of industry popped out of no where is because these kinds of things are not regulated. If they were, targeted ads would be a much harder problem.
I don't think this is legal in the EU. I suppose somebody has to complain to the correct commission or sue to find out for sure though.
It probably is declared somewhere deep in the user agreement.
Irrelevant.
Even if it is declared somewhere, that would not make this behaviour legal in the EU.