It is becoming increasingly important (and even a requirement in some states) to provide a written privacy policy to your website visitors. You need to disclose to them how you use ANY information you collect. This applies to any information that is "personally identifiable". I recommend that you err on the side of providing a policy. Even if all you collect is a name and an email address on the "Contact Us" page. Setting up a privacy policy is easy if you don't already have one, and privacy policy setup is included for free with every website by Gemstone Ventures. Here are a few good reasons to make sure you are covered:
- Many people will avoid websites that do not have a privacy policy
- Some anti-virus and anti-malware software applications that scan internet links will blacklist a site with not policy, this makes it less likely that your site will turn up in searches when people are looking for companies that provide your services.
Here is a good article on what legal pages all websites should have: http://webdesign.about.com/od/legal/qt/legal-pages-for-websites.htm