What is the primary purpose of a privacy policy on a website?

The primary purpose of a privacy policy on a website is to inform users about how their data is collected, used, and protected. This document serves as a crucial component of transparency in online interactions, letting users know what personal information may be gathered, the methods of collection, the intended use of that data, and the measures taken to ensure its security.

Users increasingly prioritize their privacy, and a clear privacy policy helps establish trust between the website and its visitors. It also ensures compliance with various legal and regulatory frameworks that require organizations to disclose their data practices. By openly communicating this information, websites can reassure users that their personal data will be handled responsibly, which is essential for fostering a positive user experience and maintaining a good reputation.

The other options—such as explaining terms of service, promoting branding, or outlining penalties—serve different functions that do not directly relate to users' rights and protections regarding their personal data. While these elements are important for a comprehensive website strategy, they do not encompass the primary role of a privacy policy.