At my store eggs are in the egg section, though very close to the dairy section. And in my store the fake sausages are in the fake meat section, though very close to the meat section.
There have been veggie burgers out for years, sometimes in the meat section and sometimes in the deli section, but nobody has raised a fuss. I expect that's because they were wholly unpalatable tasting somewhere between sawdust and dog shit. "Beyond Meat" and some of these other new fake meat brands are actually very good. In fact, to my mind, the Beyond Meat sausages are better than regular sausages.
If this restriction passes, the issue could spread. Is Soy Milk going to become Soy Beverage for instance. Or Egg Beaters will become Fluffy White and Yellow Barf? How about genetically modified grains meat and veggies. Are we going to have to find new labels for them.
What the farmers don't seem to realize is that these alternate foods aren't trying to pretend they're meat. Their big selling point is that they are not meat and they broadcast it loud and proud on their packaging. The problem for the farmers is that this stuff is damn good, sometimes even better than meat. What the farmers have to do is get rid of all these hormones and additives so that meat actually has flavor again.