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A privacy policy is a legal document that outlines how a website collects, tracks, and stores users' personal information. This video tutorial from eForms, a large database of legal forms, aims to help users understand privacy policies and how to create them. It discusses the significance of cookies and their inclusion in privacy policies. Furthermore, it emphasizes that laws and regulations require companies to inform users about their data handling practices. Any website or app that collects user data must have a privacy policy in place. For assistance in creating an effective policy, viewers are encouraged to click a link at the end of the video.