A privacy policy is a legal document that outlines how an organization collects, uses, and protects personal information from its users. It informs individuals about what data is being gathered, the purpose of the collection, and how it will be stored and shared. This transparency helps users understand their rights regarding their personal data. Organizations, such as websites and apps, are required to have a privacy policy to comply with laws like the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). A clear privacy policy builds trust between users and the organization, ensuring that individuals feel secure when sharing their information.