Not quite. The meme is referencing a new law that targets platforms when the money is sent as a payment. So, for example, if you Venmo your roommate 2k over a year for utilities, your roommate is fine unless you mark it as for a vendor (there’s a little toggle whose exact text I forget). This meme is making that joke.
I do a lot of con/fair/vendor stuff and support. I have heard (but never done because that’s illegal) that among friends it’s very common to not check that flag to save those friends some headache. It’s also a really good way to get scammed if you do it for strangers on the internet.
I suspect that platforms push it down to the users to reduce their compliance burden. Why make life better for your end users by spending some money when you can just make life more complicated for small businesses by having them own everything even the things they don’t know about?