If Flock is just giving everyone in their company access to production data it's not that the sector needs ,more regulation, it's that someone need to audit Flock for compliance.
They don't take it seriously because of some moral, "We care about your privacy" stance. They take it seriously because if there's something that makes them look bad in there, they want to be able to control the narrative. If a Flock camera catches and officer doing something they shouldn't be doing, the agency/FBI doesn't want a disgruntled Flock employee to be able to sign in and grab that video and give it to the news.
This sounds a lot like BD guys doing demos with random data from a customer that agreed to show allow access and a local citizen getting very bent out of shape about it.
Like literally every other YC company lol.