The title doesn't make is sound bad.
I mean, besides lawyers, who cares if some legal document is missing. You can respect privacy without a privacy policy, plenty of people do.
Here, it seems the actual problem is that there is no adult in the room, literally. Just kids that are completely clueless about how to care about personal data. Here, "no privacy policy" doesn't just mean "we dislike paperwork", it means "we are letting kids play with personal data without adult supervision".