It isn't a question of regulation it is market forces. Anyone willing to pay the extra for it is not going to be willing to pay the extra for 99% of it. Look check my profile if you don't believe me, I am a near daily baker and I use olive oil for nearly every loaf. Which means I pay more and I sure as shit not going to pay more for something fake when I can pay a few pennies more for the real deal. Never even once seen a cut olive oil for sale.

Also where did you even find it in Hoboken? That city is nothing but bars and apartment buildings. Sure it wasn't over the line in Jersey City?