Final answer:
The privacy issues in the Milly Dowler case involved journalists hacking her phone, not stealing her diary; this incited a major scandal and led to an inquiry into press standards.
Step-by-step explanation:
The claim that privacy issues in the Milly Dowler case concerned journalists stealing the missing girl's diary is false. The actual controversy centered around journalists from the News of the World newspaper engaging in phone hacking. They intercepted and deleted voicemails on Milly Dowler's mobile phone, giving the family false hope that she was still alive, which also interfered with police investigations. The case highlighted significant privacy issues and journalistic ethics, sparking public outrage and leading to the Leveson Inquiry into press standards.