Participants of the Adsense program are required by Google TOS to post a privacy policy on all sites displaying Adsense ads. Whether or not you've read the fine print, if you are actively displaying Adsense ads, you have likely agreed to the terms which mandate this action.

If you've put this off for any reason, it appears Google will actually penalize you for this violation. Here are some sample policies and generators that may assist you in streamlining the writing process if you have not yet posted your own policy.

Privacy Policy Generator

Sample Privacy Policy

AdSense-friendly privacy policy sample for AdSense publishers to use | JenSense

Please feel free to add to this list.