Is it the media or the lawmakers (or both) who have no idea of what they are talking about? If I create a new search website which ignores your entry and just picks 50 random web pages as the "search" result, even that method of picking is an algorithm.
“even that method”
In the link to the bill itself, in the definitions section, they are calling the search you describe as an “input-transparent algorithm”, which they have no problem with.
The problem “algorithm” is that what takes your search requests and couples it with user data to decide what you see and in what order.
Probably both. They heard "rithms" and thought about "rythyms" so they decided that everyone should be able to make up their own tunes and dance moves. /s