|So just don't do any thing bad.|
Now that says it all!
I don't worry about logging or anything because I'm not doing anything anybody really cares about.
Technically, to get info from an ISP requires a warrant so there is protection for the private citizen. Wireless is inherently insecure (and that's one of the biggest reasons I don't use it) so all you can do with it is ensure you use the highest level of encryption on your wireless network possible. Don't forget to use a long, and complex encryption key as well.
The law does not require them to but it has been a president that all ISPs follow. I
Actually, ISP's intially started logging as a means to protect themselves. If someone tries to hack an ISP, this is how they track it. If it's a client, they cut them. I said, "pretty much have to by law" because while it isn't yet required by law, you can bet law enforcement agencies would prefer it were a law.
It's common practice and pretty much always has been for ISP's to log. So it makes a convenient way for police to get info on hackers and child pornographers as well.
They're not the only ones. Pretty much every business does as well. Most definitely businesses that have "appropriate use" policies do. They use the logging to enforce the policy. Again, they don't have people monitoring all activity all day, this isn't cost effective. If you've ever seen a log file from say an outbound connection (I have) you'd understand why they don't monitor real-time. But, if something comes up and an employee gets in trouble, they can easily access a complete log of every website that employee has visited as well as access that employee's email.