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“MySpace.com also logs non-personally-identifiable information including IP address, profile information, aggregate user data, and browser type, from users and visitors to the site. This data is used to manage the website, track usage and improve the website services.”

Meanwhile, a significant number of consumers seem to be happy to give some personal information to service providers, if that means they get more useful services or discounts — such as with Tesco’s Clubcard.

The UK’s most popular loyalty card scheme, with ten million members, will drive an estimated £400 million in extra sales for Britain's largest grocer this year by targeting special offers based on past purchasing behaviour.

We are also losing our anonymity by carrying around identifying technologies — such as mobile phones that can be used as GPS devices and used to pinpoint a users’ location. Take this story, about a car crash victim who was identified by the serial number on his iPod — which had been registered with Apple

But are people actually making informed decisions on matters of privacy?

"Lots of people do not appreciate just how much of their data is being stored and processed," says Mr Brown.

According to Chris Kelly, Facebook’s chief privacy officer, about 20 per cent of Facebook users have tweaked their privacy controls. That suggests that eight out of ten users are happy with the default privacy settings – or are not aware of the options open to them.

Other bloggers are suggesting that Facebook does not empower its users when it comes to them controlling their content as well as it claims.

“Facebook thrives (in part) because of the content users post there,” says legalandrew.com. “But did you know that posting content gives Facebook a license to do whatever they want with your content?”

The relevant passage in the Facebook terms and conditions (deep breath):

“By posting User Content to any part of the Site, you automatically grant, and you represent and warrant that you have the right to grant, to the Company an irrevocable, perpetual, non-exclusive, transferable, fully paid, worldwide license (with the right to sublicense) to use, copy, publicly perform, publicly display, reformat, translate, excerpt (in whole or in part) and distribute such User Content for any purpose on or in connection with the Site or the promotion thereof, to prepare derivative works of, or incorporate into other works, such User Content, and to grant and authorize sublicenses of the foregoing. You may remove your User Content from the Site at any time. If you choose to remove your User Content, the license granted above will automatically expire, however you acknowledge that the Company may retain archived copies of your User Content.”

According to Mr Brown, that phrase "for any purpose" leaves Facebook free to use its users content for any almost any purpose. "They are granting themselves a very wide license ... virtuall equivalent to owning the intellectual property in question," he said.

So, can Facebook claiming “an irrevocable, perpetual, non-exclusive, transferable, fully paid, worldwide license” to the holiday pictures you post on the site really tally with users having “control over [their] personal information”?

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