The previous answer from Mohammed Younis is correct in that it depends on the requirements. If you are worried about communications privacy, DTLS over CoAP could protect traffic from snooping. Other situations are more complex. Take the case of IoT used in power demand-response systems. You could have perfect communications privacy, but papers like the one linked to below show how power companies using such IoT based systems can deduce its customers' personal activities.
If you are using IEEE 802.15.4 at the link layer, the standard offers the possibility to encrypt and protect MAC layer frames by using the AES algorithm in CCM mode.
You can take a look to the attached links for an investigation about the overhead introduced by security functionalities in a IoT network based on the IEEE 802.15.4 technology.
Article Link-layer Security in TSCH Networks: Effect on Slot Duration
Article Application of IEEE 802.15.4 Security Procedures in OpenWSN ...
Privacy, unlike security is a relative term. User/entity privacy is also defined and protected my law of a land. Privacy breach is not always unsecure.- However, in most cases, Privacy breach can lead to Security breach. It is important to distinguish Confidentiality with Privacy. Confidentiality which is mostly protected by encryption will also hide everything in the wire. But real problem of privacy is in the actual information being shared with the consumer. Meaning, is the consumer getting private information along with other information? Is the information being collected as per the Privacy agreement and so on. Acts like HIPPA in USA protect user privacy by having medical organizations such as hospitals to ask for patient's consent before sharing patient's info to anybody or any organization. Privacy depends upon Law and User's consent.
I am not sure if there exists a computing protocol for protecting privacy. If you look at oneM2M IoT Architecture, In the Security Layer, it has a framework that will take user's consent and take data consumer's demand, develop access-control policies based on user's preference so as to allow consumers to have only those data that a user wants to share. oneM2M Architecture Specs can be found here: http://www.onem2m.org/' I hope this helps. - JN