Maybe I’m missing something, but my read is that it creates a mechanism/standard for labeling content. If content is labeled under this standard, it is illegal to remove the labeling or use it in a way the labeling prohibits. But I don’t see a requirement to label content with this mechanism.
If that’s the case I don’t see a problem. Now, if all the content is required to be labeled, then yes it’s a privacy nightmare. But my interpretation was that this is a mechanism to prevent AI companies from gobbling up content without consent and saying, “What? There’s nothing saying I couldn’t use it.”