> The market-based approach wouldn't have these companies rolling back their surveillance, but consumers en masse moving over to paid, privacy-focused alternatives.

I see what you're saying, but you're referring to something like a "market-based solution" to this problem. The one and only market-based outcome is the one we have. This is a case of imperfect information. There's no reason to expect a market-only approach to deliver a desirable outcome when one party has so much more information than the other.