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Researching into something for Google Analytics today, I came across their terms and conditions.

Did you know that by agreeing to these terms and conditions you agree to have a privacy policy on your website?

In section 7 of their terms and conditions, it states:
“You must post a privacy policy and that policy must provide notice of your use of a cookie that collects anonymous traffic data.”

For a link to the full policy:

This is also required with other Analytics packages such as Omniture, but as John points out, they provide a method for users to opt out of the cookie to prevent their information from being tracked. Something Google does not seem to be providing yet.