Your customers are very much sensitive about their personal information and they want to know how you're going to use their personal information. A “privacy policy" just makes everything clear to them. You also need to include a disclaimer or terms of use page on your site to avoid any conflict between your user and the website. Here’re few resources from where you can get help in this regard.
• DMA Privacy Policy Generator• OECD Privacy Statement Generator
• Google Adsense & other Ad Networks Privacy Policy Generator
• Privacy Policy Generator
• Free Site Disclaímer
For better assistance you may need to consult your local attorney.
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