This sort of thing is becoming the norm, and will become the norm with IoT. When every device is connected and has a computer, it can and will have the ability to be locked down, intercepted and monitored remotely.
People don't know or care about privacy, that's been amply proven, they just want rhetoric.
This is basically lending equipment while paying full price. We've gotten used to it with software, phones etc. Its absolutely ridiculous they have to sign agreements that exempt the company from any wrongdoing, and aren't allowed to perform basic repairs.