Company must rewrite terms in order to comply with European legislation.
Government privacy watchdogs in the UK, Germany and Italy have all warned the search giant that it must rewrite its terms and conditions or face legal sanctions.
The company has already faced similar warnings from France and Spain’s privacy bodies last month.
“In particular, we believe the updated policy does not provide sufficient information to enable UK users of Google’s services to understand how their data will be used across all of the company’s products.”
The company has until 20 September to amend the policy or face legal sanctions, the ICO said.
In Europe, the company has been censured over the collection of WiFi data, including usernames and passwords, through its Street View cars.
On 21 June 2013, the ICO gave Google 35 days to delete all the data it had collected or face contempt of court procedures, after the body found it had retained data even after being told to delete it previously. Google claimed the disks had been retained accidentally.
Furthermore, the company has been asked to clarify the data protection implications of its Google Glass wearable computing technology on both sides of the Atlantic, after it emerged the device can take photos and videos of people without their knowledge or consent.
However, the company declined to elaborate on how this is possible when facing litigation from European data protection regulators.