Secondly I was curious as to how a consumer group managed to get enough cash together to make this. A quick search reveals http://techrights.org/2009/05/04/consumer-watchdog-exposed/ which suggests that Consumer Watchdog is a for-hire astroturfing organisation hired by Microsoft.
Certainly Google aren't completely innocent and raising awareness among people about privacy on the internet is a good thing. But this ad doesn't seem to have come about from the goodness of someone's heart.