Are we really that lacking in creativity that we can't imagine a world in between "Panopticon" and "Oregon Trail"? Legislation that makes this illegal would be a great (and really easy) start.
Legislation is really working right now, with Congress sitting on 400+ bills and refusing to vote on them, and with known members of the government, including the actual President of the United States of America, committing crimes and the top law enforcement agent doing worse than nothing about it.
Laws work in a society that values them. Once you throw that away, your authoritarians will do whatever fits their needs. And surprise, the authoritarians are doing just that right now.
It’s really not that complicated. If sufficient political will existed to enact stronger clearer privacy protections, legislation would be drafted and approved rapidly, and there is no reason Generating that political will is another matter.