Generating a compact privacy is fairly easy thanks to online resources like P3P (Platform for Privacy Preferences Project) and http://www.p3pwriter.com. Here are some more P3P resources for further reading.
After using one of these online resources, you’ll get something that looks fairly unintelligible to you, but which will make perfect sense to your customer’s browser. For example, if the letters NOI appear in your policy, that means that your site does not collect identifiable information. On the other hand, if ALL appears, access is given to all identified information.