These days privacy policies are standard for any Internet marketer. But as recent FTC law enforcement actions make clear, having a privacy policy is just the first step. It’s critical that companies live up to the promises they make about how they use and secure the information they collect. Here is information on what should be included in your website privacy policy (link to Online Information Guidelines page)
In addition, there are specific requirements to protect children, covered by:
The Children's Online Privacy Protection Act