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A privacy policy statement is typically a web page contained within a site that describes how your business will use the information that it collects from its visitors. It proves to your visitors that your business is committed to protecting the privacy of their personal information. Including a privacy statement policy and/or page is consider a good practice and should be strongly consider any time you collect information from your users/visitors. Keep your privacy policy statement simple, easy to read and understand.

Some in the search optimization community also believe that having a privacy policy page on your site can legitimize your business to search engine algorithms helping in your page ranking.

The Direct Marketing Association is a good resource for learning more about privacy policy statements. The DMA also has a useful privacy policy generator tool.