Two-way radios have a limited number of channels available based on frequencies assigned by the FCC, so there's always the possibility that someone else is using the same channel you're using. To avoid this congestion, privacy codes were created.
Privacy codes are based on the CTCSS or DCS code functionality of two-way radios. A receiving radio with a privacy code set will not unmute its speakers unless the code is sent with the transmission. If the receiving radio is set to channel 2 and privacy code 5. The transmitting radio must be set to the same channel and code. This allows you to communicate between the two radios without interference.
Additionally, selected groups can be set to the same channel and code for efficient communication with a group of users at the same time.
Privacy codes do not keep your conversations private, they simply filter out transmissions from others who do not use the same CTCSS or DCS tone. If you have Private Tone enabled and someone else doesn't, they will hear your transmissions but you won't hear theirs. If any unknown user tunes into the same channel and code you are using, he or she can hear the ongoing conversation. Therefore, the privacy code feature should be viewed more as a distraction canceller rather than a feature that provides conversational privacy.
If you activate the privacy code feature on your device, it will append an inaudible tone to every outgoing transmission. Incoming transmissions are filtered, allowing only those with the same inaudible tone to pass through.
Analog CTCSS codes are numbered 1 to 38 and are generally compatible between brands. Numeric DCS codes are numbered from 39 to 99, 121 and even higher, but may not be fully compatible between different brands.
Privacy codes are also available on all channels, whether they are FRS, GRMS or other services.
The advantage of privacy code is that it can prevent your conversations from being leaked or interfered with to a certain extent.One of the disadvantages of privacy codes is that you might think that because you can't hear any communication on the radio that the channel isn't in use. Then, when you press the "Talk" button on the radio and start talking, you'll be talking to the person who is already transmitting. If this happens, all transmissions from all radios will be garbled. Most 2-way radios have a "watch" button that when pressed disables the privacy code feature so you can hear if there is any activity on the channel before transmitting.