EXACTLY. You nailed it Bob.
The traditional situation was legally strict but in practice allowed for discreet violations (who the heck is gonna check someone's sex in the bathroom?).
This new crap throws the door wide open to exactly what you said.
Now nearly 896,000 have signed the pledge to boycott Target:
https://www.afa.net/action-alerts/sign-the-boycott-target-pledge/