Lucille is worried that the government will be able to look into our search history. Leo says that ISPs will be able to sell our history, but they will hold onto it, not the federal government. But let's face it, if they want it, they can get it.
Your ISP knows all of your data. But Google is responding to this by encrypting everyone's search history, so no one can see it. The data could be sold off, but it wouldn't be usable then. What isn't encrypted, they'll be able to not only read, but sell.