Not true. I suggest that you familiarize yourself with the actual regulation.
I do know the regulation - but I would suggest you are missing my point. Regulatory law in general tends to be very very much overly prescriptive. And is rarely enforced to the letter precisely because it is overly prescriptive - enforcing the letter of every regulatory law would bring the US economy to a standstill tomorrow and put all company officers in jail within a year. You are arguing the letter of the law. I am arguing the intent.
Note too that the indignation in this case seems odd to me since the very people being indignant have undoubtedly been the beneficiary of multiple instances of arguably similar levels of pertinent info.