How Communicating about the Privacy Notice Impacts Trust. The Role of Clarity and Transparency

Considering the widespread use of privacy labels to inform users about apps’ privacy practices, this study investigates the impact of privacy notice communication content and its clarity on trust in AI-based health apps. Drawing on Signaling Theory, a 3x1 between-subjects experimental design was used to examine how varying levels of privacy notice communication content completeness — ranging from minimal (data collection) to comprehensive (data collection, processing, dissemination) — influence perceived trust, mediated by perceived clarity and transparency. Results show that a more comprehensive privacy notice communication significantly enhances trust, with clarity and transparency serving as serial mediators. These findings highlight the importance of balancing content detail with design clarity to reduce information asymmetry, fostering trust in privacy-sensitive applications. Practical implications suggest that app developers and policymakers should adopt user-friendly yet informative communication strategies to meet regulatory standards and enhance user confidence.