Why do I need a Privacy Policy?
Privacy policy contract serves for letting your users know how and how much of their personal data will be used.
So, it's main purpose is to inform them about your intentions and allow them to agree or disagree with your principles of leading your business, enabling them this way whether to participate or not, according to their free will.
When a user fills out a contact form or signs up for your newsletter, this is your chance to collect personal information from them, things such as date or birth, name, e-mail address, job title etc. They have the right to know that you won't give away their information to whosoever or that they won't start getting unwelcome or annoying e-mails messages (spam).
A privacy policy agreement is a matter of trust and respect, the legal way to establish the relationship between service providers and consumers/users in the benefit of both parties.