You recall incorrectly. The requirements state it something like this:
The airplane shall have a means for the flight crew, when seated at the flight controls to determine
- the fuel quantity in each main fuel tank...
- The fuel quantity indicators must read Empty when the tank contains only unusable fuel.
Now, a fuel gauge that's only accurate at Empty isn't any sort of a reliable means of determining the fuel quantity. The requirement to read Empty at the unusable level is a specification, but they don't give a specification for the rest of the range. Yet the requirement implies at least some sort of accuracy.
These gauges weren't too bad when they were new. But many are worn out, and don't give indications that are anywhere near useful. It's usually the senders in the tank that are shot, or their float arms have been bent and the sender is not properly indicating the floats level.
In addition, gauging tanks that are shallow and long and wide is difficult; any movement of the airplane sends the fuel sloshing all over the place. Tanks in wings also have dihedral to deal with. The sender has to be able to sense the unusable fuel level, meaning that it has to be at the inboard end of the tank, but it's the center of the tank where the sloshing affects gauging the least.