Google has added a link to its privacy policy on its homepage and results page to not violate the California Law. If you were to read the Business and Permission Code by the California Law, it says a link to the privacy policy must be on homepage. The text of the link must include the word "privacy".
BUSINESS AND PROFESSIONS CODE SECTION 22575-22579
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=bpc&group=22001-23000&file=22575-22579
Google Changes Home Page, Adding Link to Privacy Policy
http://bits.blogs.nytimes.com/2008/07/04/google-changes-home-page-adding-link-to-privacy-policy/
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