Not strict at all if they're advertising them as water-resistant then denying warranty coverage for damage caused by exposure to water that a reasonable person would assume to be safe based on Apple's claims. I don't know the specifics, so it's possible they did nothing wrong, but if people are having their phones damaged when they expected them to be fine and Apple is denying coverage when they shouldn't be, then they absolutely should be fined, as well as sure by consumers. Of course $12m is nothing to them, and they may just take the hit and move on, but they may fight it just for the sake of not rolling over and not wanting to look guilty.
As a related aside, several years ago I bought a fairly expensive Thermoworks thermometer that was advertised as being water-resistant, including being able to go through the dishwasher, and the packaging (or manual, don't remember) stated the same. After a couple years, it failed, and when I contacted support to see about a warranty replacement, they told me it sounded like water damage, which wasn't covered. I argued that the advertising and packaging/manual both described it as water-resistant, so it should be covered, and they said that was a mistake, that it was inaccurately described, and offered me something like $10 off a new one (it cost something like $40 or $60). So somehow their mistake in advertising and writing the manual was my fault, and they refused to take care of it. Needless to say, I'll never buy another Thermoworks product again, and the replacement I bought for ~1/4 of the price works just as well, if not better, but it serves as a perfect example of why companies need to be held accountable, and why fining them for stuff like this is not only not strict, but necessary.
Oh, and another thing with the thermometer: I couldn't even post a review on their site to warn others, because they took it down. Completely dishonest and unethical company.