It would mean that the government / judicial system would have Very Deep Access and control over the businesses to ensure whether this data is handled properly. On a smaller scale this happens in Europe (as a whole and individual countries) with the GDPR and co; audits or complaints about data ownership, required disclosure under penalty of fines for data leaks, etc.

They can hire as many lawyers as they want but they will be punished if they're not careful with user's data.