Purpose of a Privacy Policy

[e-link]

I been looking around at other sites similiar in content with my site, as well as cooprations trying to get a understanding of what a private policy contains, and the purpose it serves.

From what I gathered my conclusion is that the purpose of this is to address what information is collected by users on the parts of the site.

Am I correct?

[jessebhunt]

The privacy policy generally tells your visitors what information you collect (email addresses, phone numbers, mailing addresses, ip addresses, etc.) It also tells them what you intend on doing with the information that you collect (will you email them, share the list with other companies, etc.)