Georgina Nelson, privacy lawyer for consumer watchdog Which?, suggested that one solution could be to introduce standardised privacy policies that would allow customers to make like-for-like comparisons, without having to plough through reams of legal paperwork.

The organisation is planning to introduce a privacy seal in the first quarter of 2013, which companies will be able to display on their websites if they meet certain data protection criteria set by Which?, in collaboration with the Information Commissioner's Office.

However, Nelson admitted that there is a fine line between giving consumers the information they need to make informed decisions, and bombarding them with information that they will not bother to read. She said that a lot of work would be required to get the balance right.

Graham concluded the most important thing was for companies to "treat their customers as grown-ups", and recognise that economic prosperity and growth should not come at the expense of people's privacy.