That is either beholden to big business, downright stupid, or both.
If yoyu want an even more blatant example of this, look into the history of stevia and the FDA. Which includes fun stuff like the FDA burning crates of herbal tea because that tea contained stevia, declaring it an unsafe food additive seemingly entirely because NutraSweet wanted them to, and not that much later creating rules that allowed it to be sold to any one in any quantity for any reason as an “herbal dietary supplement”, but only so long as you didn’t mention that it had a flavor. Mentioning that it was sweet tasting transformed it from an herbal dietary supplement that’s basically harmless into a dangerous unsafe food additive.