In some cases, it isn't. This would be one of those cases - tax increase because of the spending increase required for a new department, little benefit in practice, anti-free market, etc.
It's a culture issue, not particularly a regulation issue. Fining companies for doing with data exactly what they say will be done with data in their ToS (Granted, ToSs are a terrible concept - they are legal and enforcable depending on how the government is feeling for the day, though) would allow the government to effectively shut down platforms it didn't like by fee. Proposing a department to "Calibrate and Levy Fines" upon media is bizarre.
The proper thing to do would be solely focusing on educating the populus, or alternatively funding the EFF to do it for them.
A limited solution is better than no solution.