Security is a big deal these days. Google understands this, which is why its Safe Browsing team is implementing even more mandates for applications. Apps that handle user or device data will soon have to provide their own privacy policies. If this requirement isn't met, warnings may be shown on users' devices.
One of the changes to the Play Store announced at Google I/O as "coming soon" was the ability for app developers to publish links to their privacy policies, thus making their intentions more transparent right out of the gate. By using Android apps, we allow a lot of personal information to travel through the tubes, and it's in everyone's best interests to disclose just what exactly happens to it in an open way.
Here's the relevant bit from the Google I/O session I was talking about earlier: