Here is a site where you can generate privacy policy for free.
This privacy policy generator is very easy to use.
You just enter your site URL and email address.
Then you select whether you use cookies or otherwise.
Next you pick your choice of advertiser which you use in your site.
The list of advertisers include: Google Adsense, Clickbank, Commission Junction, Kontera, Chitika, Linkshare, Amazon, Widget Bucks, Adbrite and Azoogle.
Finally you click on "Create my Privacy Policy" button.
Here is a list of six (6) free privacy policy generators you can check them out:
1. http://www.generateprivacypolicy.com/
2. http://www.buildasitebookmarks.com/ResourceCenter/FreeWebTools/PrivacyPolicyGenerator
3. http://www.bennadel.com/coldfusion/privacy-policy-generator.htm
4. http://privacy-policy-generator.legalriver.com/
5. http://www.privacypolicyonline.com/
6. http://www.serprank.com/privacy-policy-generator/