Of course it doesn't appear "spontaneously," it's the result of your actions and others' actions, hence the "cabin in the woods" solution. The commenter is implying that expecting each individual to carefully act to preserve their online privacy clearly isn't producing good outcomes, and would like to see collective action through regulation to encourage better outcomes.
> If you want to scare businesses, ban arbitration clauses and other self-absolving Terms of Service.
That is one potential way to implement the suggested "hazardous material" policy. If storage of any data opens a business up to legal action with teeth then they'll stop risking the storage of such data outside of when the benefit to them outweighs the potential risk. Ideally the risk would be such that it becomes standard practice to process data on-device and design protocols and services such that only the absolute minimum required amount of information leaves end-user devices.