I don't see what the fuss is about. It's a trade association, not the government, trying to maintain standards of kiltmaking.

It's not so different from what is already the practice on this very board. "Tank" is an 8 yard kilt made of wool tartan fabric that weighs 16 oz per yard (or more I guess.) "Designed in Scotland" on the label of a kilt has come to signify a cheaply made kilt of synthetic material manufactured in Pakistan, thanks to Gold Brothers.

Even if there were governmental regulations of standards for what are called kilts, it would not be a great leap from regulations in other areas, such as appellations controllees of French wines and cheese, or some products in the US. E.g., in Georgia onions can be sold as "Vidalia onions" only if they are grown in a five county area of south Georgia. This was done to protect the local market and consumers from sweet onions grown in Texas that were being sold as Vidalias.