I think that's a bit draconian, sounds like a way to ensure only the Facebook's and Google's of the world hold a monopoly as I could see that to discourage entrepreneurs and new startups.
Maybe a little better... I guess if you are a young startup and broke then nothing to lose? If you don't own a house or much in the bank...
But I feel these breaches also make the compaines look bad, so bad PR I think is a big hurt. However at the same time you have no choice to be included or not with some things. Like with LexisNexis or Equifax, since as far as I know I can't tell them to delete all my info and as far as I know I never consented to them having my data.
