Technically it is a self-certification program, since it's the device manufacturer who signs the certificate, but that's not the whole truth. A manufacturer still needs to prove compliance (in the case of the EMC directive, either Annex II or III) or slapping on the mark is just fraud.

> I have a Tonbux power strip where the C and E are definitely too close together.

As per Wikipedia, quoting the European Commission, people displaying the CE logo with incorrect dimensions exist. This does not prove the legend.

> Edit:The website I linked is a Chinese manufacturer. If it was an urban legend, it seems to be being treated as fact in a way that matters now.

Please stop spreading urban legends on the basis that other people believe in them.