This has nothing to do with spying or misreading customers.
As a customer, I want to know what data a service stores and how it is used, without digging through pages of cryptic terms and services.
Informed consent is the keyword here.
Plenty of paid services share their data with third parties.
As a customer, I simply want my data to not be stored at all, unless I explicitly asked for it, in which case the consent is obviously implied.
> Plenty of paid services share their data with third parties.
And plenty of paid services don't. And those don't have to change anything. That's my point.
I doubt that you are going to explicitly ask sites to store your IP address, so how do you think that should be handled?
[1] IP address alone doesn't prove location, but it is evidence. The EU, for example, for requires for internet sales that you justify your choice of whose VAT to collect by providing two non-contradictory pieces of evidence for the location you chose. IP address can be one of those pieces. Billing address of the card used for the purchase can be another, and for most people that and IP address is enough.
Now, maybe it would be preferable to ask for permission in those cases as well (just put a checkbox in the order form?), but my point (though maybe not stated clearly enough) was not that I expect only data to be stored when I explicitly ask for it for be stored, but that it is only stored when I explicitly ask for something that necessarily requires the data to be stored. So, if I order some digital goods, it might be required that the shop stores my IP address, so that's probably OK. But my point is that that does not include the permission to use it for anything other than fulfilling the legal obligation, and most certainly not to also store my navigation behavior on their website, or to keep it once they don't need it for tax purposes anymore.
[1]: https://ico.org.uk/for-organisations/guide-to-data-protectio...
[2]: https://ico.org.uk/for-organisations/guide-to-data-protectio...
[3]: https://ico.org.uk/for-organisations/guide-to-data-protectio...