Mathew Ingram:

That said, however, the company maintains that the issue was a simple oversight, and nothing worth getting concerned about. And this isn’t the first time Google has played down complaints about its behavior on privacy. After Buzz was launched and a number of users criticized the company for connecting them with all their email contacts whether they wanted to be connected or not — subsequently publicizing those connections without making it clear they would be public — Google CEO Eric Schmidt told attendees of one conference that the issue was blown out of proportion, that there was no harm caused and that the situation was primarily a result of users misunderstanding the service.

Privacy is an issue that will not go away, better square away your companies privacy policy.