The part about viewing family.html seems kind of understandable. If you assume no bad actors, then it's crazy... But we're all developers here, we know that you have to assume the existence of bad actors, and assume that they are going to target you (which is why we you always validate data client data server-side). I could see how viewing family.html could turn into a real headache for HR/Legal, especially if the law says that you can't discriminate based on family information.

The other part about log analysis seems crazy, though, I agree with you on that.