It's unenforceable (since it's way too easy for companies to just say claim they forgot you didn't want to be tracked), but that doesn't mean it is incompatible. It would work if ad companies were acting in good faith.

The fact that ad companies are evidently not acting in good faith makes this a bit of a moot point, but morally it's important to point out that ad companies don't have to make it impossible to opt-out.