This has touched on the implications of the net and a global marketplace. Each country has it's own laws and practises so now, with the net and online businesses, you can have a US company, doing business in china, but do they operate under US or Chinese law?
This problem cropped up not too long ago with online gambling. If memory serves it is illegal to gamble online in the US yet all these sites, mainly based in Carribean and European Countries, continue to operate.
While our privacy laws protect us here, I don't know that they can be enforced when it comes to citizens of a host country.....