But once the momentum of having these labels on _a lot_ of products gets established, customers start to un-see them, and the sales risk of applying the label drops to negligible. So just slap it on everything, which adds more noise to the signal, which further derisks adding the label, etc.
At this point it probably just needs a hard reset; tear out prop 65 in the process of replacing it with something that learns from these lessons. Maybe make the warning label cost something e.g. mandate that its application include quantitative risk backed by a third party lab test.