Well, apparently this has been included in lots of human foods for the past 20 years or so, but consumers weren't aware. Now that they are, they're demanding products that don't contain it, and the processors are crying foul. From my perspective, it seems more like people found a way to sneak stuff that used to be discarded into human food to increase profits, and now they got found out and are trying to say "but you've been eating it for 20 years now."
It's one of many cases where the legal definitions of food terms are much more inclusive than the consumers think they are. And when people bounce back and forth between working for the producers and working for the government agencies that are supposed to regulate them, whose best-interests are in mind when the rules are written?