Google warns that privacy opt-in rules could create "dystopia"
I’ll have to agree with Google on this one. The ability for a server to collect information about you has always been around since the internet existed. Services on the web use data gathered from its users to determines where to improve itself.
There’s no free lunch.
For the few already paranoid, you don’t sign up for the service before reviewing the privacy policy. That should be SOP. Most people just want to see the content of the page they’re visiting, they’ll ignore all dialogs to get there. My dad clicks ok and install to any dialog he comes across while surfing (he’s learning to click ‘x’ more often now).
Educating the majority of the public is large undertaking that is most ineffective. People choose the option recommended by their expert peers in the field (or ‘ok’ it). Most people don’t want to be bothered with the legal stuff - it breaks the train of thought. When was the last time you cared to read the terms of service? Most will just check it and move on. Usually people get suspicious if you request more personal info than email & name.
Finally, if the law is put up, how would that be enforced? Only the large US-based companies would be penalized; other companies outside the US and nefarious companies would simply ignore this. Google Analytics would effectively be migrated to another company somewhere else. This is similar to why gun control is ineffective: the law-abiding civilians are disarmed but the criminals still wield guns.