-We're not doing anything dodgy.
-Other than the fact that it makes them feel "creeped out".
Pick one.
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Feeling creeped out doesn't mean someone is being dodgy.
But more times than not it does. Since there's a long history of companies doing bad stuff, you definitely don't deserve the benefit of the doubt on this one.
there is also a long history of people giving up their personal data to get some (overall) irrelevant service and then being surprised when their data is missused...
Yes, but how much of that can be attributed to the service not adequately explaining what they are collecting and how they are using it to the users upfront, in a format that non-lawyers can understand?
Non-lawyers are very large and diverse group
of people.
My mother does not understand where data is kept, what is encryption or anonymisation even if you darw it for her...
and if my father wants tp watch porn he’ll pop his CC where ever just to jerk off...