Google wants its AdSense partners to update their privacy policies to accommodate interest-based advertising. How does this advertising work? Google uses its DoubleClick DART cookie to track personal website viewing habits. Based on the content that you view on different websites, Google determines what types of advertisements might be of interest to you. When you visit a website that has AdSense, Google will serve you targeted ads on that site with the expectation that you’re more likely to click on one of the ads because you’re interested in it.
Of course, this is general information and not legal advice. Talk with your Internet business attorney about specific legal issues.