Update docs to give visbility of data collected

PRIVACY_NOTICE.md

@@ -1,3 +1,35 @@
 # Privacy Notice
 
-This project follows the [Privacy Policy of Astronomer](https://www.astronomer.io/privacy/)
+This project follows the [Privacy Policy of Astronomer](https://www.astronomer.io/privacy/).
+
+## Collection of Data
+
+DAG Factory integrates [Scarf](https://about.scarf.sh/) to collect basic telemetry data during operation.
+This data assists the project maintainers in better understanding how DAG Factory is used.
+Insights gained from this telemetry are critical for prioritizing patches, minor releases, and
+security fixes. Additionally, this information supports key decisions related to the development road map.
+
+Deployments and individual users can opt-out of analytics by setting the configuration:
+
+```
+[dag_factory] enable_telemetry False
+```
+
+As described in the [official documentation](https://docs.scarf.sh/gateway/#do-not-track), it is also possible to opt out by setting one of the following environment variables:
+
+```commandline
+DO_NOT_TRACK=True
+SCARF_NO_ANALYTICS=True
+```
+
+In addition to Scarf's default data collection, DAG Factory collects the following information:
+
+- DAG Factory version
+- Airflow version
+- Python version
+- Operating system & machine architecture
+- Number of DAGs
+- Number of TaskGroups
+- Number of Tasks
+
+No user-identifiable information (IP included) is stored in Scarf.