But binding arbitration is pretty standard in terms of service.
And lose time and money, which they also likely don't have?
And as this is something that has already happened there isn't much else the person in question can do. Third parties always have option to just disclose information to whoever asks it, at most you can hold them accountable for it later if it was unlawful. And what accountability exactly means depends on what laws exists. If you want some real accountability for the people/companies involved in these kinds of decisions then get Congress to pass such laws (however impossible it might be).