Another legitimate question is: is the fact that you are willing to pay more a good enough reason to force me to pay more? What if I don't care about privacy as much as you?

That's the real issue here. You can either decide that privacy is a basic right that everyone has and cannot be negotiated away, in which case this law makes sense.

Or you can decide that it's a decision each person makes, and let the market take care of providing options that are more vs. less privacy-respecting.