packet inspection and privacy

I recently claimed that, in the USA, there is a law that prohibits an ISP from inspecting packets in a telecommunications network for anything other than traffic statistics or debugging. Was I correct? I'ld also like to get opinions on privacy policies for network operators. It has been suggested that we should adopt a policy that says that we'll notify customers if: 1) we inspect traffic, 2) we're aware that an upstream is inspecting traffic 3) we're required to inspect traffic (by anyone). Point 3) is just about the same as 1), but it does imply a slightly different motivation behind the inspection. Thanks, -mark