Friday's data protection crackdown has sparked chaos as small companies, charities and religious organisations are misinterpreting the rules.

The new rules, called GDPR, which stands for General Data Protection Regulation, are designed to better protect consumers' data and stop businesses bombarding them with unwanted marketing material.

Companies that break the rules can now be fined up to 4 per cent of their turnover by privacy watchdogs.

The Telegraph has heard from a number of organisations who have felt confused and stressed after speaking to the Information Commissioner's Office helpline or seeking independent legal advice to ensure they continue to be law abiding.

Speaking to Radio 4's Today programme on Friday, Elizabeth Denham, the Information Commissioner, reassured small businesses that they will not be punished for failing to be ready on time.

"Small businesses should not panic," she said. "We are not looking for perfection. It is nonsense to think regulator will make early example of small businesses.