The advent of the Internet of Things (IoT) and the massive growth of devices connected to the Internet are reshaping modern societies. However, human lifestyles are not evolving at the same pace as technology, which often derives into users' reluctance and aversion. Although it is essential to consider user involvement/privacy while deploying IoT devices in a human-centric environment, current IoT architecture standards tend to neglect the degree of trust that humans require to adopt these technologies on a daily basis. In this regard, this paper proposes an architecture to enable privacy-by-design with human-in-the-loop IoT environments. In this regard, it first distills two IoT use-cases with high human interaction to analyze the interactions between human beings and IoT devices in an environment which had not previously been subject to the Internet of People principles.. Leveraging the lessons learned in these use-cases, the Privacy-enabling Fog-based and Flexible (PyFF) human-centric and human-aware architecture is proposed which brings together distributed and intelligent systems are brought together. PyFF aims to maintain end-users' privacy by involving them in the whole data lifecycle, allowing them to decide which information can be monitored, where it can be computed and the appropriate feedback channels in accordance with human-in-the-loop principles.