The law defines it as a product quality issue. Meaning you can return it for a refund and a company that keeps selling broken products may be ordered to recall them or to stop selling them until they're fixed. You can't go to jail for selling broken products, and this doesn't apply to free software since it's free and has no warranty (which is only allowed because of the fact that it's free.).

Do you think the rule that children's toys can't contain lead is equivalent to living in North Korea? That's the same kind of law as this one.

You also have a lot more flexibility to negotiate on product quality. If you have a good reason why you can't meet normal product quality standards because your product is sufficiently different from the normal products in that category, you can usually put a prominent warning label on it to cover your ass and then you're fine.