OK so if I understand you, you are worried that companies are collecting data on people and then using that data to give them more personalized ads. These ads may convince people to buy or do things that they otherwise wouldn't. It's not just that people would buy Chevys instead of Fords. They could be convinced to vote differently and support harmful policies.
I hope that's an accurate summary of your view.
I have a few points.
First, I don't think targeted advertising is much more effective than your typical magazine ad, TV commercial, radio ad, or movie trailer. In all of those cases, the advertisers know the demographics of who is consuming that media and can target pretty effectively. And if targeting was far more effective than old school ads, advertisers would pay significantly more for targeted ads, but they don't seem to. CPC for Facebook and Twitter is about the same (~50 cents), despite one allowing for much more fine-grained targeting. And I doubt LinkedIn does better targeting than Facebook, but LinkedIn's CPC is 10x higher.
Second, is this an instrumental value or a terminal value for you? eg: If all advertising were banned (or at least heavily taxed), would you no longer want a ban on companies storing customers information? If so, I'd like to hear why.
Third, what if we could pass laws that caused the benefits of targeted ads to outweigh the downsides? For example: We could ban targeting for politics. Then people could still get ads for more things they want, such as some software that would help them or some new barbershop that opened near them. That seems like a win-win to me.
Lastly, whenever I see an argument between to sides, I pay attention to emotions. In my experience, the less emotional side tends to be the more correct one. If a side mostly engages using disgust, anger, and catastrophizing, I get very suspicious. If I had to pick the more emotional side in this thread, it would definitely be the side that accuses the other of, "violating basic human decency", of being "horribly unethical", and doing "stupid privacy violating shit". On the other side, pretty much everyone against this law seems to think it's mistaken, not evil.