A privacy policy is a legal document that explains how an organization collects, uses, and protects personal information from its users. It outlines what data is gathered, such as names, email addresses, and browsing habits, and describes how this information may be shared with third parties. Privacy policies are important for transparency and help users understand their rights regarding their personal data. Organizations are required to have privacy policies to comply with laws and regulations, such as the General Data Protection Regulation (GDPR) in the European Union or the California Consumer Privacy Act (CCPA) in the United States. These policies help build trust between users and organizations by ensuring that personal information is handled responsibly and securely.