diff --git a/capy_discord/exts/tools/privacy.py b/capy_discord/exts/tools/privacy.py
new file mode 100644
index 0000000..0f09976
--- /dev/null
+++ b/capy_discord/exts/tools/privacy.py
@@ -0,0 +1,108 @@
+"""Privacy policy cog for displaying data handling information.
+
+This module handles the display of privacy policy information to users.
+"""
+
+import logging
+
+import discord
+from discord import app_commands
+from discord.ext import commands
+
+
+class Privacy(commands.Cog):
+    """Privacy policy and data handling information cog."""
+
+    def __init__(self, bot: commands.Bot) -> None:
+        """Initialize the Privacy cog.
+
+        Args:
+            bot: The Discord bot instance
+        """
+        self.bot = bot
+        self.log = logging.getLogger(__name__)
+        self.log.info("Privacy cog initialized")
+
+    @app_commands.command(
+        name="privacy",
+        description="View our privacy policy and data handling practices",
+    )
+    async def privacy(self, interaction: discord.Interaction) -> None:
+        """Display privacy policy and data handling information.
+
+        Args:
+            interaction: The Discord interaction initiating the command
+        """
+        embed = discord.Embed(
+            title="Privacy Policy & Data Handling",
+            color=discord.Color.blue(),
+            description="**Here's how we collect and handle your information:**",
+        )
+
+        embed.add_field(
+            name="Basic Discord Data",
+            value=("• Discord User ID\n• Server (Guild) ID\n• Channel configurations\n• Role assignments\n\n"),
+            inline=False,
+        )
+        embed.add_field(
+            name="Academic Profile Data",
+            value=(
+                "• Full name (first, middle, last)\n"
+                "• School email address\n"
+                "• Student ID number\n"
+                "• Major(s)\n"
+                "• Expected graduation year\n"
+                "• Phone number (optional)\n\n"
+            ),
+            inline=False,
+        )
+
+        embed.add_field(
+            name="How We Store Your Data",
+            value=("• Data is stored in a secure MongoDB database\n• Regular backups are maintained\n\n"),
+            inline=False,
+        )
+
+        embed.add_field(
+            name="\n",
+            value=(
+                "**Who can access your data:**\n"
+                "• Club/Organization officers for member management\n"
+                "• Server administrators for server settings\n"
+                "• Bot developers for maintenance only\n"
+            ),
+            inline=False,
+        )
+        embed.add_field(
+            name="How your data is used",
+            value=(
+                "• Member verification and tracking\n"
+                "• Event participation management\n"
+                "• Academic program coordination\n"
+                "• Communication within organizations\n\n"
+            ),
+            inline=False,
+        )
+        embed.add_field(
+            name="Your information is never shared or used for marketing purposes.\n", value=(""), inline=False
+        )
+
+        embed.add_field(
+            name="Data Deletion",
+            value=(
+                "You can request data deletion through:\n"
+                "• Contacting the bot administrators\n"
+                "• Calling /profile delete\n\n"
+                "\n"
+                "Note: Some basic data may be retained for academic records as required."
+            ),
+            inline=False,
+        )
+
+        embed.set_footer(text="Last updated: February 2024")
+        await interaction.response.send_message(embed=embed, ephemeral=True)
+
+
+async def setup(bot: commands.Bot) -> None:
+    """Set up the Privacy cog."""
+    await bot.add_cog(Privacy(bot))