This is a law with good intent that was very poorly written and is very ambiguous. Most of the people with your view posting here aren’t experts in this regulation or the law in general, but just armchair lawyers who scanned this regulation and like the intent so they argue that it’s simple.
Ironically, if you asked 10 different people with that position about basic facts about this law, you’d all have different answers. Maybe if it’s so simple you could all take a few mins to get your story straight on how it works?