Headline is a bit misleading
It’s not misleading. Canada is doing the same thing. Check out Kattenburg vs. Attorney General of Canada.
I don’t know that it is misleading. Their point is that 2 items from the same geographic location will have different labels depending on who produced it. If a Jew made it, it will say “made in Israeli colonies” but if a Muslim made it it will say “made in Palestine”. Seems to be accurate.