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In this video tutorial, the host demonstrates how to add a privacy policy to a WordPress website. The first step is to log in to the WordPress dashboard and then go to Pages and click on Add New to create a new page named "privacy policy." It is important to note that the page may initially have a generic example of a privacy policy, but users are advised to create their own privacy policy. The host clarifies that they are not a privacy policy specialist but are providing guidance on how to add a privacy policy on a WordPress site.