A Privacy Policy, also known as a Privacy Notice, simply put is the document where the website or app owner discloses what data is being collected from users, how it's being collected and what the owner is doing with that data.
Yes, it's extremely likely that you need a Privacy Policy for your website. If you collect at least one category of personal information from visitors (let's say, email address or even IP addresses through your website server logs), then the law requires you to have and publicly post a Privacy Policy.
Yes, a Privacy Policy is now a legal requirement in many countries around the world, such as all European countries (GDPR law), USA (through CCPA and CalOPPA laws) and many other countries.
First of all, you won't be breaking the law. A Privacy Policy is legally required for all websites or mobile apps that collect personal information from visitors either directly (ie. asking visitors to provide information) or indirectly (ie. through integration with third parties). Second, visitors will consider you to be trust-worthy as you're transparent with your policies on user information.
It's simple: