This is completely relevant: http://www.daemonology.net/blog/2012-01-19-playing-chicken-w... ("Playing chicken with cat.jpg" by Colin Percival from tarsnap)

> "The answer isn't for ... the company ... to prove that they can be trusted; the answer is to ensure that their customers don't need to trust them. ... The best way to avoid privacy breaches is not to formulate a detailed privacy policy; it's to reduce your capabilities so that you're unable to violate anyone's privacy."

Just think of what target companies like this will make for hackers. It's an accident waiting to happen.