Swartz also notes potential challenges emerging from the way individuals and organizations share information. It's easier than ever to pull together disparate bits of information, develop opinions about it and present those opinions publicly. "Maybe you've lost three jobs, or filed for bankruptcy or have a DUI. Do the pieces of information available about you on the Web over a period of time tell a story you would rather not have told?" he muses. "It could be a concern. We won't know how big of a concern it is until there is a benchmark incident of some sort."

If such an incident occurs--a privacy breach that causes a public backlash against companies--what might happen?

Privacy experts believe that under the Obama administration, public pressure could push policymakers to take the side of consumers and demand more controls on companies. As a candidate, President Obama posted a position statement on his website that included a promise to strengthen consumer privacy protections. "That's what consumers are really worried about," says Milla, the former SSI CIO.

Milla fears that a major privacy incident could spark Congress to slap together an onerous regulation and race it through, a la Sarbanes-Oxley.