I'm not really sure what answer you're looking for here. The basic answer is that the system is corrupt and the interests of big corporations are heard much louder than the interests of individual constituents who don't have as many dollars to throw around capitol hill.
The reality is: privacy is no longer possible in a connected world. So, rather than worrying about collection/privacy. Maybe, the best use of our energy is best-spent trying to pass laws that standardize disclosure to the customer and the mandating of an audit process...?
Privacy is completely and entirely possible. It's not good for corporations, and they literally own the US Congress, so that affects everyone else in the world.
I'm not really sure what answer you're looking for here. The basic answer is that the system is corrupt and the interests of big corporations are heard much louder than the interests of individual constituents who don't have as many dollars to throw around capitol hill.