Facebook’s reckless use of private data is a public hazard not unlike passive smoking. It’s not going to be solved by an asymmetric fake free market where customers are free to choose an option that doesn’t exist.
In my recollection, in the US, 30 years ago restaurants had "smoking" and "non-smoking" sections. And non-smokers sometimes complained bitterly about smoke wafting into the "non-smoking" section. Which in fact led to some restaurants being all non-smoking before government intervention. The NY statewide ban on smoking in workplaces was only passed 15 years ago.
I don't know about bars 30 years ago, though. Because drinking has always been considered a "vice", I think people tended to group it with smoking and think if you're going to tolerate one, why not the other.
Smoking bans in restaurants and bars have made a significant difference in most states.
If I remember correctly, we had a non-binding agreement between the health ministry and our national restaurant and hotel organisation at first, but this did not change much.
Even most smokers I know agree that the laws were necessary, and that they are thankful for them because otherwise they would not go outside to smoke.
It also makes them more likely to buy them illegally.