What does a privacy policy outline?

A privacy policy serves as a formal statement that explains how an organization collects, uses, and protects personal information. This document is essential for maintaining transparency with individuals about what to expect regarding their data. It typically identifies the types of personal information gathered, the purposes for which that information is used, any sharing practices, and the measures in place to protect that information from unauthorized access or breaches.

The elements included in a privacy policy aim to build trust between the organization and its customers, ensuring that individuals are informed about their rights and how their data is being managed. This is particularly important in the context of various privacy laws and regulations, which require organizations to have clear and accessible privacy practices.

In contrast, the other choices do not accurately represent the core purpose of a privacy policy. For example, outlining how customer data can be sold is contrary to the privacy principles of transparency and consumer rights. Pricing models for data access and detailing data security measures employed by third parties may be relevant in different contexts but do not encapsulate the primary objectives of a privacy policy.