It's not. You are wrong.
What if this law will be abused as a tactic to attack business competitions?
Why would that happen?
How do you understand this "security appropriateness" of the above text? How can you be sure your understanding is correct?
You use your knowledge or regulation to read and make decisions. If you don't have the required experience, you hire a consultant or a lawyer. Just like you do when complying with any other piece of legislation.