>Google has been very upfront on exactly how their business model works with users since day one. I don't find this comparison warranted.

That couldn't be further from the truth.

How many people know Google using location data from Android phones to track which physical stores users visit?

They were even mining paid Google Apps for Business accounts for tracking data.

From http://www.edweek.org/ew/articles/2014/03/13/26google.h33.ht...

Highlights:

"As part of a potentially explosive lawsuit making its way through federal court, the giant online-services provider Google has acknowledged scanning the contents of millions of email messages sent and received by student users of the company’s Apps for Education tool suite for schools. In the suit, the Mountain View, Calif.-based company also faces accusations from plaintiffs that it went further, crossing a “creepy line” by using information gleaned from the scans to build “surreptitious” profiles of Apps for Education users that could be used for such purposes as targeted advertising."

"A Google spokeswoman confirmed to Education Week that the company “scans and indexes” the emails of all Apps for Education users for a variety of purposes, including potential advertising, via automated processes that cannot be turned off—even for Apps for Education customers who elect not to receive ads. The company would not say whether those email scans are used to help build profiles of students or other Apps for Education users, but said the results of its data mining are not used to actually target ads to Apps for Education users unless they choose to receive them."

...

"Student-data-privacy experts contend that the latter claim is contradicted by Google’s own court filings in the California suit. They describe the case as highly troubling and likely to further inflame rising national concern that protection of children’s private educational information is too lax."

"Mr. Thiele said his district has used Google Apps for Education since 2008. Officials there have always been aware that the company does “back-end processing” of students’ email messages, he said, but the district’s agreement with Google precludes such data from being used to serve ads to students or staff members. As long as the company abides by those terms, Mr. Thiele said, “I don’t have any problem with it.” In an emailed statement provided to Education Week, Bram Bout, the director of Google Apps for Education, said that “ads in Gmail are turned off by default for Google Apps for Education and we have no plans to change that in the future.”"
...
"Those plaintiffs in the California lawsuit allege that Google treats Google Apps for Education email users virtually the same as it treats consumer Gmail users. That means not only mining students’ email messages for key words and other information, but also using resulting data—including newly created derivative information, or “metadata”—for “secret user profiling” that could serve as the basis for such activities as delivering targeted ads in Google products other than Apps for Education, such as Google Search, Google+, and YouTube."

"The plaintiffs allege that Google has employed such practices since around 2010, when it began using a new technology, known as Content Onebox, that allows the company to intercept and scan emails before they reach their intended recipients, rather than after messages are delivered to users’ inboxes, regardless of whether ads are turned off."

"While the allegations by the plaintiffs are explosive, it’s the sworn declarations of Google representatives in response to their claims that have truly raised the eyebrows of observers and privacy experts. Contrary to the company’s earlier public statements, Google representatives acknowledged in a September motion to dismiss the plaintiffs’ request for class certification that the company’s consumer-privacy policy applies to Apps for Education users. Thus, Google argues, it has students’ (and other Apps for Education users’) consent to scan and process their emails."

"In November, Kyle C. Wong, a lawyer representing Google, also argued in a formal declaration submitted to the court in opposition to the plaintiffs’ motion for class certification that the company’s data-mining practices are widely known, and that the plaintiffs’ complaints that the scanning and processing of their emails was done secretly are thus invalid. Mr. Wong cited extensive media coverage about Google’s data mining of Gmail consumer users’

>Mr. Wong’s inclusion of the following reference to the disclosure provided to students at the University of Alaska particularly caught the attention of privacy advocates: The University of Alaska (“UA”) has a “Google Mail FAQs,” which asks, “I hear that Google reads my email. Is this true?” The answer states, “They do not ‘read’ your email per se. For use in targeted advertising on their other sites, if your email is not encrypted, software (not a person) does scan your email and compile keywords for advertising. For example, if the software looks at 100 emails and identifies the word ‘Doritos’ or ‘camping’ 50 times, they will use that data for advertising on their other sites.”
“The fact that Google put this in their declaration means we take it as true,” said Ms. Barnes of the privacy watchdog group EPIC. Google’s sworn court statements reveal that the company has violated student trust by using students’ education records for profit.”

From a Google filing in court about Gmail privacy:

>Indeed, “a person has no legitimate expectation of privacy in information he voluntarily turns over to third parties.” Smith v. Maryland, 442 U.S. 735, 743-44 (1979).

>it's "inconceivable" that someone using a Gmail account would not be aware that the information in their email would be known to Google.