Many parts of our everyday lives have been automated as a result of the Internet of Things (IoT) device development, resulting in previously unknown efficiency and comfort. The risks and challenges related to privacy are a major worry raised by this technological revolution. This paper investigates ways to improve protection of privacy while examining the flaws in IoT automation systems. At first, the study addresses possible privacy dangers related to IoT automation, focusing on three major areas: data collection and storage, data sharing and third-party access, and user privacy choices. The report clarifies the possible hazards to individual privacy and highlights the necessity for effective mitigation methods through a thorough investigation of these concerns. The paper proposes a number of mitigation solutions to solve issues and improve privacy protection in IoT automation systems. These strategies include the acceptance of user-centric privacy choices, secure data transfer protocols, transparent data governance frameworks, and data anonymization techniques. The report also explores the regulatory framework around IoT automation and privacy, including details on the current legal systems and alternative legislative suggestions. This study adds to the expanding body of knowledge in the topic of privacy and IoT by emphasizing the weaknesses and providing useful ideas for improved privacy protection in IoT automation systems. The research aims to educate decision-makers, experts in the field, and researchers, fostering the creation of safe and privacy-conscious IoT solutions that protect people’s rights to privacy in the digital age.