Of course it's possible that some people who may be doing this aren't actually aware of the extraordinarily onerous EU regulations. They're not exactly common knowledge. So words like racketeering and unethical may be a little harsh?
The law is indeed the law; I would make the point that I doubt any individual American artisan combined with a small UK distributer could achieve compliance and economical viability at the same time, on either side of the pond. But I could be wrong about that, and maybe some people find it easier than I to navigate their way through the morass of legislation and uploading to EU websites.
Not to mention paying for safety assessments.
The regulations are certainly in the consumer's favour. Soap is included here as a cosmetic, whereas I don't think it is in the US, so their legislation about it is less restrictive (unless that's changed recently - last I heard, it was on the cards). So yes, EU produced soap is subject to more safety controls than US ones. I don't know about other products, and how FDA regs compare with EU for those.
My personal view, given the time and expense caused by EU regs, is that they should be watered down somewhat for small producers. The way things are going, the only choices eventually will be L'Oreal, Proctor and Gamble and the like. Because small producers simply won't be able to continue with half their time and profit going into compliance. Ask me how I know....
So a little to the side of the topic, for which I apologise. But some additional context, I hope.