When I interviewed with Google, I spoke with several people on the Maps team. I mentioned that they needed to address the privacy issues of street view before they were sued. I suggested facial recognition and suggested some possibilities, primarily Eigenfaces. They responded (correctly) that what they were doing was not technically illegal. I argued that it was still going to be perceived as a violation of privacy (this is the company with the motto “Don’t be evil”, after all).

They did not listen. And now they are being sued. It’s definitely only the first of many, too.