That's not an argument in this (legal) case since the regulation applies at the time the device is sold.
(It just means the applicable law is another one, i.e. the one against recording in secret, which applies regardless of what the recording device looks like.)
[Ed.: it could still be considered a design/manufacturing defect, I guess. It certainly would fail if it were intentionally made such that the LED is trivially disabled. The courts may have to decide if this is in the grey zone.]
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That's not an argument in this (legal) case since the regulation applies at the time the device is sold.
(It just means the applicable law is another one, i.e. the one against recording in secret, which applies regardless of what the recording device looks like.)
[Ed.: it could still be considered a design/manufacturing defect, I guess. It certainly would fail if it were intentionally made such that the LED is trivially disabled. The courts may have to decide if this is in the grey zone.]