Of course.
this would mean companies would be immediately obliged to disempower their entire staff
No.
Their entire staff is already "disempowered" to make decisions that could put the company in legal trouble. Also this is intended, not merely reckless. Do you really believe this was some nobody's idea? Come on!
Please, someone with real legal knowledge could you explain why this is not like Volkswagen.
I suspect that privacy violations are not quantified or else a "class action" would dry any and all the profits.