There’s a spike in teenager suicides, girls in particular. The phenomenon is well researched, it correlates with popularity of social media among teenagers. I believe that’s causation not just correlation, because social media didn’t became popular everywhere at once, they did gradually for different countries/languages, the teenager suicides spike follows.
Restricting data collection will fix that by dismantling the business model. Will be harder for tech companies to convert screen time into profits. Will even flip the motivation developing addictive apps: the more time users will spend there the more bandwidth they consume i.e. profits will turn into costs. Which is good for most people, except employees and stock owners of social media companies.
P.S. Personally, I prefer more radical approach: total ban of advertisements on the internets. Many cities did it for billboards, I don’t see why we shouldn’t do the same online.