A privacy policy is a formal document that outlines how an organization collects, uses, stores, and shares personal information from its users or customers. It typically details what types of data are collected, the purposes for which the data is used, how it is protected, and with whom it may be shared. Privacy policies also inform users about their rights regarding their personal data and how they can exercise those rights. Many countries require organizations to have a privacy policy by law, especially if they handle sensitive or personally identifiable information. Clear privacy policies help build trust and ensure transparency between organizations and their users.