I think I'll stand back from this debate and hope somebody with a legal background can fill in on what the law allows these companies to do. The one thing that I will say is that hearsay is always dangerous (even if it later turns out to be true).
I guess the answer to the question is buried very deeply in the "Terms & Conditions" document of the services in question (which may in turn refer to other documents such as a privacy policy).
Let's see what reactions spill out of this...
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