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In this video, Katie O’Brien addresses the confusion around legal documents needed for a website. She recommends including essential documents to protect both visitors and the business. First, a privacy policy is crucial if collecting data, as it informs visitors about what data is collected, its purpose, storage, and protection measures. Second, terms and conditions are necessary to outline the rules for using the website and serve to protect the business. These documents ensure transparency and legal compliance while building trust with website visitors.