The knee-jerk reaction to more tightly regulate industries and professions every time a customer is dissatisfied tends to hurt honest professionals, who are just trying to do their jobs, more than it prevents negative outcomes.
This entire situation does highlight the need for consumers to be aware of the risks they run with their data before deciding to entrust it to a third party as well as the need for robust guardrails for government agencies that want to access that data through the third party.