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+# Privacy Policy
+
+In accordance with the GitHub Marketplace Developer Agreement v2.4, all apps listed on the GitHub Marketplace are required to provide a privacy policy. This privacy policy outlines how the [AlexanderMelde/yapf-action](.) GitHub Action collects, uses, maintains, and discloses user information.
+
+## Data Collection
+
+When you use [yapf-action](.), a [GitHub-hosted runner](https://docs.github.com/en/actions/using-github-hosted-runners/using-github-hosted-runners) will clone your repository to process it. This action utilizes the latest version of [yapf](https://pypi.org/project/yapf/) to format your project's source code. During this process:
+
+- GitHub-hosted runners, which operate within Ubuntu environments, perform the action.
+- Tools such as pip and Docker are used to install dependencies and manage the environment.
+
+### Important Notes:
+
+1. **Third-party Infrastructure**: We rely on GitHub Runners, Ubuntu, pip, and the yapf pip package to perform the action. These components are outside our control.
+2. **Source Transparency**: You may review the source code for [yapf-action](.) and consult the respective privacy policies and source codes of these third-party services.
+
+### No Data Collection by yapf-action:
+This action does not introduce any additional data collection mechanisms. No user data is collected, stored, or transmitted by [yapf-action](.) itself.
+
+## Additional Details
+
+For further information regarding licensing and liability, please refer to the [LICENSE](LICENSE) file in this repository.