There is a big difference between:

1. Here is a lawful search warrant signed affidavit and approved by a judge _or_

2. Here you go, the data on kefka. Thanks for asking.

Complying with lawful search warrants is one thing, doing targeting ads based on users behavior for money is something else.

Targeted ads can be anything from a DEA honeypot that advertise cheap drugs, to quick guide for easy tax evasion made by the IRS. It might be ads targeted at people with specific sexual preferences. Any search-able trait imaginable that Google can target is exploitable, and the policy document is an official intent to do so.

Avoid collecting such information in the first place, which of course would require a different business model, which brings us back to the initial point.