To boost user trust and loyalty:-
People trust businesses that are transparent and honest with them. They want to know that you are handling their data appropriately and using it in a way that benefits them as well.
And gaining their trust is much more difficult if they don’t know what you do with their data.
Trust for people who want to know more about your app:-
People want to know more about your app. They want to know what kind of information you collect about them and what you do with it.
Users appreciate transparency, and if you are honest and upfront about how you handle their information, they will likely appreciate it.