If you display AdSense on your Blog or Website you will know Google have a strict set of terms and conditions (T.O.S.). Like most sets of terms and conditions it is in general full of the usual legal jargon so most people click 'I accept' and move on, they think "if there was anything significant it would be part of the sign up process."
This is a quote from the AdSense Blog a few months ago :
You're not alone, most AdSense publishers I talk to had no idea. Even if you have a Blogger or Wordpress blog the Policy is required.
Now we know we need one and we know what it is, let's get you one.
This is very easy and as in the title will take you 30 seconds !
Step 2. Fill out the details required :
â–ºSite URL : The address or your blog or website www.YourSite.com
â–ºEmail Address : Enter the Email associated with your site or just your main Email
â–ºAdvertiser Information : Considering you have got to this point of the point I can presume you use AdSense, just tick any other Advertisers you use.
Now you can create a new page for your website or a new post for your blog and copy your new policy into it.If you have a Blog you will be able to back-date the post a few months so it does not show up in your recent posts or on your homepage.
You can also see a great article on Making More Money From Adsense without getting banned.