You and I have different meanings for the word, efficiency.

My definition: the most efficient has the least wasted effort and the maximum productivity.

I do not think having individuals & classes going off and suing everyone they can, every company buying piles of insurance against these suits (because how could they reasonably guarantee perfect privacy?) and having insurance providers coming to evaluate each institution...

This is only legally efficient, in that it requires the least amount of nuance in law.

There's a reason we have public infrastructure and services, and it is for efficiency.