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Sure, you only want to target companiesYes. There are many laws (e.g. accounting) that only apply to companies, when it's scale that amplifies harm.
> possession, not use
How are they different, in this context? The latter requires the former, and the former is unprofitable without the latter.
> how are you going to audit Ford or Geico?
As you note, similarly to how we audit now, albeit hopefully more proactively. If the law requires a signed off third-party PII audit, and holds an auditor legally liable for signing off on one... I expect the problem would (mostly) take care of itself.
PII is always going to be a game of edge cases, but we've managed to make it work with PCI and PHI in similarly messy domains.
Right now, companies have GDPR & CCPA to nudge them in data architecture. National laws would just further that. I can attest to major companies retooling how they handle and track consumer data just due to the CCPA.