Even if you did not pay attention to them, you have probably seen privacy policies and terms of service statements on multiple websites, especially those owned by major businesses. If you are just starting out with a new web hosting account, do you really need to worry about such things?
One strand of thinking would say that there is really no reason to bother with such formalities on a small website and that only big businesses that collect a lot of user data need to be concerned with it. On the other hand, many small websites still collect user data, particularly small online stores, and those stores are as vulnerable to lawsuits as any major corporation.
There are many websites and free services that offer privacy policy generators and terms of service templates. If for no other reason, having those statements on your website provides clarify if a user is ever unsure about your purpose and what you do with their information.
Photo: Flickr