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A thought that hit me when I strayed into news and politics or shit: possession is nine tenths of the law.
It goes equally for cloudflare sniffing passwords too do whatever they want (which may or may not be legal or ethical, I don't know, didn't read the details) as for the governments doing things that are illegal.
Laws are words on paper. It's proven time and again that you can twist them in many ways. It's nice to have them, but people in charge will be - or won't be - enforcing the laws.