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Here's an interesting research on "Examining Internet Privacy Policies Within the Context of Use Privacy Values" :
"In this paper, we present research bridging the gap between management and software requirements engineering. We address three research questions. 1) What are the most stringently regulated organizations (health care related organizations including health insurance, pharmaceutical, and drugstores) saying in their privacy policy statements? 2) What do consumers value regarding information privacy? 3) Do the privacy policy statements provide the information that consumers want to know?
Results from this study can help managers determine the kinds of policies needed to both satisfy user values and ensure privacyaware website development efforts. This paper is organized as follows. First, we discuss relevant research on privacy, policy analysis, and software requirements engineering. Next, we cover the research methodologies of content analysis and survey development, and then the survey results. Finally, we discuss the results and implications of this work for privacy managers and software project managers."
The only time privacy policies get read is whenever a leak like AOL's one happens, and mostly for historical purposes, where's the real value, not the perceived one? Don't responsibly generate privacy policies, consider preemptively appointing chief privacy officers, thus commiting yourself to valuing your users's privacy and having a strategy in mind.
Related resources:
Privacy
Snooping on Historical Click Streams
A Comparison of US and European Privacy Practices
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