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In this video, Josh Luck explains how to create a privacy policy for your Etsy store. A privacy policy is a legal document that outlines how you use customer data, such as emails for shipping or marketing. If you're based in Europe or sell to European customers, having a privacy policy is required under GDPR regulations. Etsy states that all sellers in the European Union or selling to EU buyers must comply with these requirements. Additionally, many countries have similar data protection laws, so it is recommended that all Etsy sellers, regardless of their location, create a privacy policy to ensure compliance and transparency with their customers.