It's like if you go to an AirBNB and the owner sneaks in at night and takes photos of you sleeping naked and keeps those photos in a folder on his bookshelf. Would you be okay with that? If you're not directly harmed, what liability would they have?
Personal data should be radioactive. Any company retaining it better have a damn good reason, and if not then their company should be burned to the ground and the owners clapped in irons. And before anyone asks, "personalized advertisements" is not a good reason.