If privacy is outlawed only outlaws have privacy. Privacy is a prerequisite for freedom > choice > economic and spiritual prosperity. Honesty means an easy life. Web of lies, laws for laws. The entanglement in karmatic relationships that bind us to the material plane is what makes life hard.
Laws make only sense where consciousness is low. It's a heavy toll on human development after a certain stage of evolution that we need to free ourselves from. It's a passage or initiation ritual.