Thank you for all the answers, still trying to figure out what the appropriate action from my part is after reading your OP post. I'm not sure that reading through privacy policy, terms and conditions for each relay will be very helpful. Maybe there is a list of "recommended" or "trusted" relays from reputable Nostr community members to choose from?

A list of recommended relays would be very centralizing. Ideally each user chooses a different operator, which requires them to search and understand what each of them is offering. We don't have tools at the moment, but it could be something somebody builds.