The EU has warned internet companies that if they don’t do more to protect the information they get from consumers they will face tougher regulations.

Meglena Kuneva, Consumer Affairs Commissioner, said that although internet users have generally chosen to opt for free services, companies such as Microsoft and Google had to respect internet users’ rights to control their public exposure. This includes protecting them against abusive and risky practices targeted at them.

But she went on to say the technology used by these companies to profile customers is becoming so sophisticated, they are recording more confidential personal information than is necessary. Ms Kuneva also said current standards of privacy are "not satisfactory" and the EU was concerned that consumers were being pressured into handing over this data.

"Basic consumer rights in terms of transparency, control and risk are being violated. There is a clear need to reassert users’ trust by being more transparent about data collection activities.

“We need to generate awareness amongst consumers that their data is being traded, and establish certain possibilities for user control. I want to send one very clear message to those involved in all aspects of the digital world – consumer rights must adapt to technology, not be crushed by it," she said.

She warned online businesses that if the EU fails to "see an adequate response", it would not "shy away" from its duty to protect consumers.