That doesn't sound too bad. At least it would be an actual compromise versus just giving up rights. Potential problem is that if someone has your information, they could background check you. Maybe some notification could be done.
Yeah, my problem would be anyone being able to do a check of anyone for anything without some notification. If they instituted a system like we have now with credit, where you could lock the ability of someone (LE would have to be exempted for it to pass) to run a check without your permission, That might be a more acceptable option for an unacceptable thing. Wanna buy a gun? Unlock your background check file so the merchant can run it. Want a job as a babysitter? Unlock your background check file so the family can verify you. Otherwise keep it locked so that crazy one night stands, psychotic coworkers, etc. can't try and screw with your life, at least in that regard.
While, as they say, "I have nothing to hide" and my background check comes back clean as a whistle, I still wouldn't want just anybody out there being able to run it at any time with a $10 or whatever charge to their credit card.