I'd say "garlic olive oil" is a different category where its name already implies a mixture of these two things, and from that name you'd expect the resulting product to contain both garlic and olive oil, and be mostly olive oil (and would be mislabeled if it's actually artificial garlic flavor, or actually canola). It's the unqualified naming that I'm objecting to, in general.

Anyway, I think the EU regulation quoted sounds pretty reasonable also, assuming something about how reasonably prominent such information would need to be.