When companies tell you they respect your privacy and you should give them your data, you tell them it doesn't matter. Because policies can change, and at the end of the day, your privacy isn't always up to an single company.
Wait. This was last year, so not the capitol riot. What happened in January last year? I'm in a decent mood today. Just going to skip looking deeper into this one. I have Factorio to play!
If a company does something bad, you can sue to fix it.
Suing sets legal precedent and forces all companies to abide by the ruling, more or less.
But now if a company tricks you out of your right to sue by putting arbitration clauses in everything, then you can't sue. You can only have a (hopefully) impartial third part tell the company to stop doing something specifically to you. The company is still free to keep doing the thing to everyone else, and their arbitration doesn't affect any other companies also doing bad things.
There are other issues too.