Coding the Efficient Privacy Policy: Striking a Balance between Lexical Density and Readability

Privacy policies play a crucial role in informing individuals about how their personal data is collected, used, and protected. However, the effectiveness of these policies can be hindered by their complexity and lack of readability. This paper aims to explore the relationship between two variables - lexical density and text readability to derive efficient privacy policies text. By striking a balance in document coding the rate of information entropy can be managed, as well as efficiency in transparency tools. The results of privacy policies of 146 healthcare institutions in the Republic of Croatia were analyzed for their lexical density and Flesch Reading Ease (FRE) score. The implications of findings on compared results can be useful in crafting optimal privacy policy, whether one should focus on text richness through improved density or on simplicity in text understanding.