There is no law.
I believe it is a requirement of Icann for registrars to make sure all data is current.
And, if the whois is totally false (or even incorrect) they can begin the process
of deleting the domain.
I had a registrar contact me because someone could not reach me by phone.
And, I wasn't returning the caller's phone calls. So, they filed a complaint.
The whois that surprises me are the ones that might say
Registrant - George Bush (or some other incorrect name)
street - none
City - Washington, DC
email address - sam101 (at) hotmail.com (which would be correct.)
Also, about a year ago, I saw a whois on a domain that obviously was a TM
problem and they had BuyDomains name on it. But, the real owners email address.