According to the ALA:
Information literacy is a set of abilities requiring individuals to "recognize when information is needed and have the ability to locate, evaluate, and use effectively the needed information."
"Lack of information is not a character defect; its just something we don't know yet. There is a difference between not knowing and not being teachable." Living Clean, pg. 199.
A great video on why Google searching becomes more flawed the more you use it. Scary marketing and privacy issues make Googling less reliable than ever.