Google has agreed to rewrite its privacy policy after pressure from the UK Information Commissioner's Office.
The firm must make it easier for users to find out how their data is collected and what it is used for and submit to a two-year review.
The deal follows an investigation by the regulator. Similar reviews are continuing elsewhere in Europe.
It is understood that Google will seek to strike a similar deal with other European regulators.
The Information Commissioner's Office (ICO) found that Google was "too vague when describing how it uses personal data gathered from its web services and products".
Investigation
The regulator - along with its continental counterparts - began looking into the Mountain View firm after its controversial privacy policy update in March 2012, which combined 70 existing documents.
It was joined by other data regulators, which form the European Article 29 Data Protection Working Party.