No one forced a women to tell her parents she was pregnant, this is a ridiculous stretch to say mail advertisements are an invasion of privacy.http://www.forbes.com/sites/kashmirhill/2012/02/16/how-target-figured-out-a-teen-girl-was-pregnant-before-her-father-did/
You don't consider that an invasion of privacy? Target got involved in one of the most intimate matters to a family. A daughter has the right to tell her parents when she's pregnant, in the manner she wants to, and her hand was, in this case, forced by a company. Maybe you've never known someone who got pregnant? Because I have (fortunately not because of me), and she was extremely, extremely fraught and anxious about telling her parents. It was her business, and her's alone.
The reason privacy get's "outsourced" to the government isn't because people are lazy, it's because they have lives they need to live, shit they need to do, and they just don't have the time of day to do the kind of research you're talking about. It's the problem with this kind of free-market thought, because it's extremely unrealistic, and just isn't possible for most people to perform. If you're working two + jobs, have a kid, have to eat, have to do every little thing a human being has to do in the course of the day, where is there room for them to read through contracts, which they may not even understand, and come to their own agreement? Hell, even if they were to do that, it would probably take them months to come to an agreement on something simple.
On top of that, I cant' even imagine how much your proposal would slow down and impede economic progress. Having one set of rules can be extremely beneficial, it can help an industry grow, and it can help produce a better product. Car emission standards are a great example. Before Obama, car emission standards were a state by state problem (and you'd want to make it a person by person problem!), and this created a lot of uncertainty for car manufacturers. They weren't sure what standards they needed to build for, and so, really, they weren't progressing much. Then, Obama comes into office, arbitrates an agreement between companies (notice how that isn't passing a law, it's just getting different parties together to come to an agreement), and since then, car efficiency has skyrocketed. Three years ago, my car was better than new hybrids. Now, my car is worse than new non-hybirds. I remember the news conference, where the industry CEO's said this, themselves, as the head of these companies.
If you look at the early history of the United States, you can see direct evidence for this. The Articles of Confederation were too weak, they made decisions too parochial. And the result was that trade suffered. It also created a host of other problems, like Shay's Rebellion. It created enough problems, that the founders of this country came together to create a stronger Union, one which more centralized power. And the results were pretty much immediate. Trade and the economy picked up really quickly, they new federal government quickly stepped into the monetary market, and helped stabilize the economy.