[dredmorbius]

The government has multiple tools in its arsenal.

It can tax. It can regulate. It can grant or deny rights. It can criminalise.

Taxation will reduce overall amounts of advertising. Taxes raise costs. Quantities of price-elastic goods or activities decrease if taxed. Ergo: an advertising tax results in less advertising.

Individually targeted advertising is regulable through both practice and rights. Government can require or restrict technology. Government can give rights (of privacy, of control over personal information), or remove them (the ability of third parties to exchange, sell, or otherwise utilise personal information other than at the express direction of the subject of that information, say).

Government can criminalise violations.

Government can make claims for redress in the case of business disputes over personal information or targeted advertising null and void. This would make any substantial business activity predicated on these activities far more risky: contracts would have no legal standing, the contract itself would be evidence of criminal activity, and any significant retention or exchange of personal information directly or by derivative would be both outside any legal protection and criminal.