Olsson publicly admitted he conned referee Mike Dean into giving Rovers a penalty in their 1-0 win at Turf Moor.
Laws was furious with Dean after the game and the Clarets chief has been further angered by Olsson's admission of cheating.
"I think there are two points here - one is the referee will be disappointed what managers and players think of him and secondly a player coming out and admitting the fact that he took a dive is another disappointing one," Laws told Sky Sports News.
"And it certainly doesn't help the situation and it certainly doesn't make it any easier to swallow the defeat either.
"That is two things to be disappointed with but that is somebody else's issue to deal with now."
Laws admits he would not be surprised if teams were targeting referees in a bid to get an advantage over their opponents.
"I am not surprised if [clubs target referees], they do enough due diligence on players so they will do it on referees and if they feel a referee gives more penalties than most then that's what maybe they will look at," added Laws.
"It is a sad state if that's the case.
"We certainly don't approach games like that and I am disappointed to actually hear it.
"I am sure the referee and the association is [disappointed] to hear things like that.
"Maybe they will have to look at it in a different light, but certainly from our point of view we are more disappointed we lost the game over it."