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Every website collects data from its users, but before doing so, it must inform them about this process. A privacy notice (or privacy policy) explains which data is being collected, how it is being used and who gets access to it. A good privacy notice is a public document written in a clear, simple, and understandable way, which helps the website to build trust and liability. The most important thing in a privacy notice is to actually follow what's in it! When changing any method of data collecting or processing, modifying the notice is necessary.
This document has a legal status, therefore you shouldn't just copy from somewhere, or use other websites' policies. Even though the privacy notice itself is not required by law per se, it is one of the requirements for being compliant.
Many companies also include details about their Data Protection Officer (DPO) in their privacy notice, who is responsible for all data privacy related aspects of the company.