"Privacy by Design," is a concept introduced by Ontario’s Information and Privacy Commissioner, Dr. Ann Cavoukian, way back in the 90’s. Privacy by Design advances the view that the future of privacy cannot be assured solely by compliance with legislation and regulatory frameworks; rather, privacy assurance must ideally become an organization’s default mode of operation. It was discussed at length in the FTC's Privacy Framework, and should be considered at every stage of development of technology.
Mark Lieberman has an excellent discussion of "Privacy by Design," in today's MediaPost. Good reading.