Ask HN: Does Google profile information you submit to Google Contacts?

I've been digging through the new Google Privacy Policy and their Terms of Service. I've noticed that there is absolutely no mention, anywhere, of how data you submit about your personal contacts is used within Google itself. I became particularly interested once Google Contacts started suggesting that I merge my contact entries with links to their respective G+ profiles, when available. Most all of the discussion I've seen so far regarding Google's proposed merging of privacy policies revolves around how to protect your own personal data. It is unclear to me whether or not they consider information you provide about your personal or professional contacts as "personal information" or "submitted content". Big difference.

Is this stated clearly anywhere in their policy or TOS or am I missing something? Am I inadvertently helping to build profiles for people without their consent, even if it's as innocuous as storing a phone number within my android phone? Does, or will, Google correlate this information with their new merged identities or does it stay in its own private silo?