In order to inform users about how you protect your their privacy and avoid any violations from Google, you must have to submit Privacy Policy URLs for apps that handles personal or sensitive user data and require certain permissions like CAMERA, LOCATION, etc.
User Data
You must be transparent in how you handle user data (e.g., information provided by a user, collected about a user, and collected about a user’s use of the app or device), including by disclosing the collection, use, and sharing of the data, and you must limit use of the data to the description in the disclosure. If your app handles personal or sensitive user data, there are additional requirements described below. This policy establishes Google Play’s minimum privacy requirements; you or your app may need to comply with additional restrictions or procedures if required by an applicable law.
From https://play.google.com/about/privacy-security/user-data
What Should You Do?
Type a Privacy Policy, and upload it to your website. That’s it. But what would you write? Where would you host it?
There’s a simple way out.
Docracy provides an open source and standardized privacy policy for mobile apps. Provided by experts and hosted on Docracy, this standard privacy policy provides a good starting point for many common app types. There are three versions (generic, ad-supported and location-based apps) of a model privacy policy that provides a sensible, fair starting point for app developers.
LINK TO CREATE A PRIVACY POLICY FOR YOUR APP FOR FREE
App Developers: Having a privacy policy for your mobile app will soon become a requirement. Major app stores are now required to inform users of app privacy policies. Docracy can provide a good starting point, and host your actual policy. Just pick one of the above options, branch and customize it, then link to the mobile URL in the app store. As you update your policy on Docracy, your users will always see the latest version.
TIP: You may use GitHub Pages to host your Privacy Policies online. For eg: my site for hosting Privacy Policies is here. You can fork it or make on your own.