The answer is YES! 

While you may never get feedback from your customers on your well-written privacy policy, I can assure you they will give you feedback if you:

1. Do NOT disclose how you handle their user data
2. Mislead them about where their user data goes

Morality and ethics ARE still important in this information age.  If you want to be trusted, you must be trustworthy.  And, trust goes a long way to building customer loyalty.