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Is Your Privacy Safe? The Hidden Dangers of Fediverse
(blog.bloonface.com)
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That's true, but I would imagine (or hope) that any instance that started running privacy invading algorithms or harvesting data would be defederated by the rest of the fediverse.
I mean the apps rather than the instances. There's nothing about the fediverse that would stop, say, Jerboa (to pick one at random, I'm sure they're fine!) from scraping and selling your data.
It helps when apps like Jerboa are open source. The average user may not notice, but anyone can in theory check what their code does and report any violations.
Very true