Diesel cars are not. (Trucks yes, but as ever ever those standards are far laxer)
But you brought up VW's emissions fraud. Do you really believe what they did should be legal, just because they got away with it for years?
Vehicle testing (emissions, especially, but MPG also) are highly synthetic measurements that aren't very representative of real world conditions.
But to come back to the point at hand - a ban on "facial recognition" is so vague that it doesn't actually accomplish anything - the companies will still do it, they'll just call it something else. "Biometrics", "Posture analysis", "Location monitoring".
Historically, government gets tech wrong, and getting it wrong fast just makes the situation worse.
Biometrics is only happening if you let it by legislation.
Biometrics is GOING to happen.
I'd rather companies be (potentially) honest, rather than move on the next thing and not publicize it.