Well, we let the taxi service pretend to be not-a-taxi, and get away with it. We let the hotel service pretend to be not-a-hotel, and get away with it.
Since no one is enforcing any reasonable rule of law, it's only a matter of time until 100% of all businesses follow suit. "We're not a hospital, we're a healthcare sharing service". "We're not a restaurant, we're a meal sharing experience". etc.