This is a bad example because the market usually fixes this problem. The reason why the market doesn’t fix the cookie banner problem and the reason why this is bad law is because users defacto do not care, it is merely annoying.
There’s a law in California that says that businesses which have chemicals that might cause cancer on the premises need to let people know. That’s great but the levels they set turn out to be lower than what you can feasibly test for and as a result all properties pretty much just put up the signs that say “there might be chemicals here”. The warning is useless and annoying because of market forces which is another way of saying the law incentivized the behavior that occurred.
The market is working perfectly here, if you remember that users are not the customers. Users are the product sold to adtech, data brokers, law enforcement, etc.
For data-harvesting companies users are like livestock, and nobody cares about livestock's opinion. It only matters how much value can be extracted from users, even if it's annoying, misleading, and relies on dark patterns.
Yes, but that "livestock" can vote with their feet. If people cared about this, it would be a good opportunity for new entrants to take market share from incumbents by not using tracking cookies and thus not needing to have the cookie banners. But (to the parent comment's point) that isn't happening because this is not a compelling feature to offer, because people do not care about this, no matter how much we want them to.
I used to think this was just an education issue, that people just didn't understand the implications of privacy concerns on the web. But I no longer think this is the case. I think people do mostly understand, and just do not consider this a priority.
There’s a law in California that says that businesses which have chemicals that might cause cancer on the premises need to let people know. That’s great but the levels they set turn out to be lower than what you can feasibly test for and as a result all properties pretty much just put up the signs that say “there might be chemicals here”. The warning is useless and annoying because of market forces which is another way of saying the law incentivized the behavior that occurred.