Doing what lights up the privacy policy ?

If you mean by checking Advanced option followed by the Submit option, then that is only there if you wish to check the privacy policy. See old image example from avast5 (I don’t have any current image from avast6).

If you click the OK button that should close the alert window and the actual submission process happens in the background during the next avast update check.

Interestingly after your post I ran a full rootkit scan as I have XP Pro SP3 (what XP version and SP do you have ?) and no alert.