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Just to try and understand the decision, an analogy that’s coming to mind would be like saying a van manufacturer wouldn’t have liability if it’s used in a bank robbery. However if the manufacturer sold it with the intent for the buyer to use it for bank robbery (the manufacturer having the intent in this case, as well as the robber themselves), then they could become partially liable.

Have I got that right?

I never said they were good Total War players ;-)
Honestly, the way this administration has behaved makes me think someone there is obsessed with playing Total War and thinks that’s how the real world works. It’s all about winning battles and painting the map red, white and blue (Greenland, Venezuela, now Iran) with no thought to what they want to achieve beyond that.

While you’re correct, corporate security teams demand suppliers “comply with OWASP,” despite this being a nonsensical statement to anyone who’d read the website.

Unfortunately, the customer purchasing your product doesn’t know this and (naturally) trusts their own internal experts over you. Especially given all their other suppliers are more than happy to state they’re certified!