I have no expertise in regional honey or olive oil or any of the other often-counterfeited things but I assume it is something like wine where the region implies terroir, relevant policies/regulations, and long histories of expertise/techniques. For example, I have heard honey is majorly impacted by the regional flowers around where it is produced.

I personally wouldn't know Italian olive oil from Greek from rancid American garbage but if people think they do and they are trying to buy something in particular then ideally they aren't mislead about that.