Just one question.
Who reads privacy policies?
You probably don’t. Just like you don’t read the terms and conditions when you download and install software, or sign up for an online email account, or rip the tag off a new mattress.
The 1% of you who do read privacy policies are probably the exact same 1% who are losing sleep because information from your iPhone address book was secretly being uploaded to the servers of Path and some other app makers.
So the Attorney General and the six companies win for looking aware and concerned about online privacy, and the privacy zealots get to rest a little easier before going off on their next crusade. (Probably against Google.)
Plus, apps makers now all have to hire lawyers to write up these privacy policies and interns to put the policies online and build links to them in their apps. Which increases employment!
Wins all around. Well done.