And even if it were to eventually... it certainly isn't right now. Your privacy has been invaded for weeks or months. That is a fait accompli; no market reaction can undo that.
That's the thing I find baffling about the libertarian fantasists. Even if in some kind of long-term it were to eliminate some kind of abuse, it can't reverse the effects of that abuse. Pollutants stay in the environment. People injured by dangerous products remain injured. Patients who die from counterfeit medicines stay dead. You can't sue your way whole.
There are many other reasons why the market isn't nearly as frictionless as libertarian theorists like to imagine. But right here, in this case, we've got an example: you will never regain the privacy that you lost because of this. Even if you switch providers, and that forces them to change the policy, it won't return the privacy you've already lost. Markets simply aren't frictionless, and that friction makes the notion that "the market fixes everything" just plain false.
That's not to say we need infinite regulations on everything. The right level of regulation is difficult and complex, and has to be worked out as a compromise. I'm just pointing out that "oh, it'll all be OK, we never need to do anything at all" isn't a helpful contribution to that compromise.