Here is Microsoft’s answers to all your privacy concerns with Office 365. This won’t make everyone happy, but it lays everything out in an easy to read format.
As an Office 365 customer you have entrusted Microsoft to help protect your data. Microsoft values this trust and cares deeply about the privacy and security of your data. Microsoft strives to take a leadership role in industry privacy, security and compliance practices by following these trust principles.
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Office 365 MVP