Users increasingly rely on consumer-facing generative AI (GenAI) for tasks ranging from everyday needs to sensitive use cases. Yet, it remains unclear whether and how existing security and privacy (S&P) communications in GenAI tools shape users' adoption decisions and experiences. Understanding how users seek, interpret, and evaluate S&P information is critical for designing usable transparency that users can trust and act on. We conducted semi-structured interviews and design sessions with 21 U.S. GenAI users. Our findings suggest that available S&P information rarely drove initial adoption in practice, as participants often perceived it as incomplete, ineffective, or not credible. Instead, they relied on rough proxies (e.g., popularity) to infer S&P practices. After adoption, S&P uncertainty constrained participants' willingness to use GenAI tools, especially for high-stakes purposes, and, in some cases, contributed to discontinued use. Participants therefore called for transparency that supports decisions and actions through trustworthy information (e.g., independent evaluations) and usable interfaces (e.g., on-demand disclosure). We categorize participants' desired design practices into five dimensions to facilitate systematic future investigation into best practices. We conclude with recommendations for researchers, designers, and policymakers to improve S&P transparency in consumer-facing GenAI.

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