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In this video lesson, viewers learn how to create terms and conditions and policy pages for free using WordPress. First, they are directed to the "Pages" section, where a default privacy policy page is already available for editing and publishing. Additionally, users are instructed to create necessary pages such as terms and conditions, refund and return policy, and a disclaimer by clicking "Add New," naming the page, and publishing it. After creating the pages, users should type or copy the required policy content into them. Finally, the tutorial guides viewers to set up these pages in the menu by navigating to the "Appearance" section to create a new menu.