Kamala Harris, California's Attorney General, says the state has reached an agreement with Apple, Google, Microsoft, RIM and others to prosecute developers who do not abide by new privacy policies. Basically, this new agreement will protect you from rogue apps that broadcast your data without your knowledge.
According to the NY Times, the new agreement will make developers post detailed privacy policies showing what personal information the app needs to access and in what manner such information will be used. On top of that, app stores will need to have a way for users to report apps that don't follow such instructions. According to California's Attorney General, if devs don't comply to the new policy, they could face prosecution under California's Unfair Competition Law and False Advertising Law.
This should be a good thing, as apps are now bound by law to respect your privacy. [NY Times]