Fancybox works great for displaying content as well as images or videos. To display content, use something like:
$.fancybox('<h1>My html content here</h1>', {
fancyOption: 'fancyValue'
});
This functionality is documented on fancybox’s How To page.
You can also use fancybox the same way you do for a link to an image, only for a link to content:
<a href="#my-fancy-content" class="show-privacy-policy">Privacy Policy</a>
<div style="display:none;">
<div id="my-fancy-content"> --- your privacy policy here --- </div>
</div>
<script>
$('a.show-privacy-policy').fancybox({
fancyOption: 'fancyValue'
});
</script>