Privacy Policies can be as short as "We won't share your information" or as long and in-depth as you want them to be. Facebook is what requires the Privacy Policy, and we just try to point that out to our users. We haven't ever heard of Facebook denying or revoking an app without a policy, but it's always a good idea to follow their recommendations.
Hope that helps explain. Unfortunately, I can't guide you as to what Privacy Policy you should use for your site.
Thanks,
Alex