What is the safari privacy setting on iPhone for?

I just got a 4s and when I go to safari in the bottom left hand corner there's a privacy setting. When I clicked on it, it didn't seem to change anything. What does this setting do?

Are you referring to the 'Private Browsing' setting in the phones Settings app for Safari? If so, this makes it so none of your history or searches are recorded. Basically if you want to search/watch things you don't want people to know that you search/watch.

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