A privacy policy is a legal document that provides transparency around how an organization handles any personal information they collect. It explains what personal data the organization collects, how they collect it, where they store it, and whether they share the data they collect with third parties or keep it confidential.
In addition to explaining how any personal data is handled, a privacy policy also outlines the rights of anyone who’s data is collected by them and instructs them on how they can access their data, correct it, or complain if they believe it's being misused.