There’s obviously something very wrong here, but it’s a dead end to say no one can sell the government info about people. Need a different approach in the vein of outlawing crazy TOSs, keeping user ownership of their data even if used to make a service operate, right to be forgotten, etc.
Telcos are exempt for exactly the reason you mention: phones are really important to daily life and they collect tons of sensitive data as a side effect of normal use.
IMO this is one of the more viable routes to getting this behavior changed: expand Third Party Doctrine exemptions to a lot more services, but to do that we’d have to confront just how much data we’re choosing to share, and whether we’re actually choosing to share it.