We already see the result of this happening in San Francisco - the policies that led to the state of the homelessness population and crime all stemmed from taking away agency from people. "Its not their fault that they are addicted to drugs. Its not their fault that they feel so desperate to turn to life of crime".
Now, with the recent shenanigans of Cambridge Analytica, if you follow this claim, you are essentially saying that people can't be trusted to make rational decisions on their own because they are so influenced by information that they see, so that information must be controlled.
None of this is farfetched. Privacy is simply being used as a political tool for people to gain control, it has no implications in the real world.