>> The general public didn't know that the application was saying "give us your name and face and we can do whatever we want with it..." They had no idea that this was even a thing.

Because EULAs and "terms of service" and "privacy policy" are all bullshit that nobody reads and should not have legally binding consequences or obligations. Peope have come to treat those things like a simple OK button but the law says otherwise. This company could produce deep-fakes with users heads on them and claim it's OK by their ToS and they might be right.