The regulation of Internet in France

Yesterday the French politics approved yours Internet's regulation, with the lobby of Carla Bruni (singer, model and French First Lady).
According the text that I read in BusinessWeek and CNN everybody that use P2P for illegal purpose will be notified by the government in the first and second use. And in the third time the user will be blocked in your ISP and will be prohibited to sign any contract with another provider, also the user will be forced to keep paying your actual ISP.

The regulation needs to be approved by the CE. But I was thinking... How the French government will detect who are use P2P for illegal reasons? And how the government will define what is illegal reason? I'm not sure, but this subject might think in privacy problems.
Here in Brazil our government are discuss an similar law. Unfortunately the Brazilian's regulation has some obscure details. Nobody knows this details for explain to the community.
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