Note that your example is not a new “goofy small law”, but an industry losing a lawsuit because of complete failure to present relevant evidence in a lawsuit applying a long-established, big (but maybe still goofy) law to them.

With the result being a goofy warning on something benign. The practical result, that helps no-one (probably harms, with desensitization of cancer warnings through obvious government driven misapplication/ineptitude), is what makes it a goofy law.