By Dan Mitchell
August 7, 2013

FORTUNE — In a recent interview, Google Chairman Eric Schmidt issued the usual defenses of Google’s (GOOG) privacy policies: Basically, Google would like to know more about you so that it can target ads at you more effectively and efficiently (oh and “make you more productive” by improving personalized search results), but you don’t have to play along. You can opt out, and Google will refrain from collecting data on your online activities.

But toward the end of this short video clip, Schmidt says: “You still know a lot about what you’re doing that Google doesn’t know — and it’s fine.”

[cnnmoney-video vid=/video/technology/2013/08/06/t-schmidt-privacy-google-motorola.cnnmoney]

Which, if you’re the paranoid type, sounds a little like: “But what about all those times I didn’t film you in the bathroom?” And with that “and it’s fine” coda, Schmidt sounds almost wistful. Or begrudgingly resigned, maybe.

“Did Eric Schmidt really say that?” was the reaction on Facebook of Marc Rotenberg, executive director of the Electronic Privacy Information Center.

CNN posted the clip today, an excerpt from its interview a few days ago with Schmidt and Motorola Mobility CEO Dennis Woodside about Motorola’s new Moto X smartphone, the first release by Motorola since that company’s acquisition by Google.

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