There are three reasons you need a Privacy Policy:

  1. First, you must inform users of the risk of using your website or app.By outlining the type of personal information you require and describing how you use it, potential users can make an informed decision on whether the risks of sharing their information are worth the benefits of your website/app.
  2. Second, making expectations clear protects you from liability.When you have well-defined terms and circumstances defined in a Privacy Policy, users cannot claim you used their information without consent.Even if users do not actually read the Privacy Policy, using clickwrap and other forms of acceptance assures they accept the terms–even if they did not review it.
  3. Third, the  character of websites and apps require knowledge of laws outside your own jurisdiction.There are countries where your product may be purchased or downloaded that require a Privacy Policy before you request a name or credit card number.If you have a Privacy Policy already, you do not have to be concerned with running afoul of the law when you have users from these nations.