A declaration to your users on what cookies are active on your website, what user data they track, for what purpose, and where in the world this data is sent.
Various jurisdictions have enacted laws and regulations, such as the General Data Protection Regulation (GDPR) in the European Union, that require websites to disclose their use of cookies. Cookie policies inform users about how a website uses and stores cookies, and what might be possibly shared with third parties. By providing clear information about the use of cookies, websites can obtain informed consent from users. Users are given the choice to accept or reject cookies, allowing them control over their personal information. A company's cookie policy ensures the company's compliance with data privacy laws.