You think a random person who would never look or care about tech would understand the privacy issues? Absolutely not. All they'd know is what the companies say and advertise.
I don't agree, especially due to massive media coverage around these issues even my mom who knows nothing about tech is very hesitant to sign up with new services and existing ones changing policies and what not.
Not everyone understands the privacy issues deeply, but they are at least aware and in many cases more careful than say 5 years ago.