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We have clearly mentioned that "we don't give personal data including email address to any third party" in our privacy policy.

So when a user try to create a account using already exit email address, I can't give a error like "Email is already registered" because it is clearly break own our privacy policy.

So what can be the process / good message to handle this situation?

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Why not give an error message that is less explicit about the problem?

For example, when the users enters with an existing email they could get a message like this.

Login has failed. This may be due to an incorrect email, password or the account is already registered.

However, when I first read the question I failed to understand why it is a breach of their privacy anyway. Just because the system knows they have an account doesn't mean you give any info to third parties does it?

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