Personal information is at the fingertips of so many of the companies we use on a regular basis, yet the laws and rules of how to use this personal data is not clear across the board.
"We have never in history been at a point where we were more extortable," said Chris Hoofnagle, a law professor at the University of California at Berkeley who specializes in online privacy. "We have to think about how the service provider itself can be a threat."
Before installing an app on a smartphone, a consumer can check out how its doing. Read MorePrivacy Grade is a collaboration of researchers that assign grades to Android apps. The grading app is done on a model to measure consumer expectations and comfort levels.
According to Privacy Grade, Google, Facebook and YouTube have an A-rating while some kid-friendly apps have less comforting marks, Fruit Ninja and Despicable Me are rated D.