That is correct, but the law system in Eco in opposite it's real life counterpart is a feature for simple automated, programmated enforcement to regulate primarily game mechanical aspects, not so much player behaviour - which is not simple at all and needs someone with a brain to assess. As such it can only act on things it can automatically detect, which is a limited set of actions. This is not one of the things it can act on, just as it cannot act on players uploading inappropriate pictures, cheating, using multiple accounts at the same time, building not so funny symbols on their properties, calling other people names in the voice chat, just finding their way around the limited implementation capabilities through exploiting or creative means or anything else that goes beyond simple game actions. Yet, servers are very well intended to be able to make regulations on those matters.
The real life law system does not have that flaw, as it has simple textual laws (like server rules or our ToS) and people that investigate, enforce and judge using them (like server admins). The law system is a support feature that allows players to determine important matters for cohabitation within the gameplay themselves, but a lot of things that can be expected from members in a society can't be regulated that way and that's one reason why servers tend to have rules.
It would probably be interesting to see what a law system powered with more recent AI technology could do (though implementation of the rules would likely need a degree), but in a sense of justice that would be a scary can I don't really want to see opened, at least in real life.
In the end there is always two sides of a medal, and where some people here wish for "grown up" admins, the other side may wish the other way around, wanting to play with people that don't take their chance on every potential advantage but instead just give a friendly hint of their findings, as I also see frequently on the official servers. Opinions on acceptable behaviour vary, from personal convictions to cultural backgrounds and mix of players on any given server. We hence generally recommend to find a server that shows its rules beforehands - or one of the more anarchy ones that simply don't have some if that is one's thing. For the majority of our players there is a clear tendency to expect what most call common decency, and that is also our stance on such matters, which reflects itself in the global ToS and rules for channels and servers provided by us.