The evolution of social media platforms has led to the creation of a dynamic ecosystem, abundant in user-generated content. This, however, has also resulted in raising concerns about data privacy. Beyond potential threats like scammers exploiting freely shared information on social media for spying, financial scams, social media companies can leverage user data to sell targeted advertising. Addressing these issues necessitates heightened user awareness. Hence, this paper first examines the privacy policies of major social media platforms including TikTok, Twitter, Facebook, Instagram, and LinkedIn, providing a comparative analysis of their data storage practices, utilization of user information, account verification requirements, and default privacy settings. Next, we undertake an extensive survey utilizing the data gathered in the initial phase to evaluate user awareness regarding the utilization of their data, highlighting a notable gap between policy stipulations and user expectations. We conclude with four recommendations based on our findings to help social media companies refine their privacy policies, promoting more comprehensible guidelines.