This probably doesn't violate any laws, or even Google's new privacy policy, but it is definitely creepy. If you search for "pet meds" on Google and you're signed in, Google pre-fills your gmail address into the ad widget. That doesn't mean they've automatically sent it to the advertiser - God help them if they did - but it sends the absolute wrong message to users about where Google's priorities lie.
Yesterday I posted about Google's new privacy policy and what it means to you. Today, I found this on Uncrunched, a personal blog run by TechCrunch's founder Michael Arrington, where he said something that exactly reflects my mind. Google is just overdoing with people's privacy. As Michael puts it, while the information may not be sent to the advertiser yet, it's just creepy to see my gmail address pre-filled in that box.
Legal spam.
Not really spam, but I get what you mean.