A privacy policy is a well-defined and legally bound internal document that depicts how you manage user data. This includes how you collect, process, store, and utilize them.
Also known as a privacy clause, it highlights a form of agreement between your website and visitors, users, or customers, as the case may be. That’s why a typical policy shows what the website can do with collated data and what rights users have over how their data is used.
Of course, the primary focus of every privacy policy is on how each data piece is securely held to prevent breach, misuse, or unintended use.
source: https://forgeandsmith.com/blog/privacy-policies-what-every-website-needs/
