Ethics and Privacy Concerns Practice Test

The primary purpose of a privacy policy is to outline how personal data is handled by an organization. This document serves as a formal declaration to users, detailing what types of personal information are collected, how that information is used, stored, and shared, as well as the rights users have regarding their personal data. It is essential for fostering trust between the organization and its users by being transparent about data practices.

By providing clear information on data handling, a privacy policy helps users understand the level of privacy and security they can expect. It addresses legal obligations and ensures compliance with relevant data protection laws, such as the GDPR or CCPA, which outline the responsibilities organizations have when managing personal information.

In contrast, the other options focus on aspects unrelated to privacy and data management. Informing users about pricing, promoting products or services, and detailing organizational structure do not relate to how personal data is treated, making them secondary to the central function of a privacy policy.