Palace and Everton were one of the teams to have had a ideal start to the season and despite restoring parity in the Saturday game after Everton had taken the lead through Calvert-Lewin, Palace was to go down courtesy of a penalty from Richarlison.
The Toffees got the better of Palace 2-1 away from home at Selhurst Park in London in the Premier League on Saturday.
In practice, the latest interpretations of the handball law are seeing more offences given for what would once have been viewed as accidental handball.
"I do not understand how we have allowed this rule to come into operation", Hodgson said.
"I think the rule is a nonsense". And if people genuinely believed that this would make the soccer game better, good luck to them.
"These days we're in a situation where we can't understand what is a handball and what isn't; it's absolute nonsense".
I just saw it on screen, and the idea that this is a handball, it's just nonsense. "For me, it's completely unacceptable and I've got to be honest with you, it's certainly destroying my enjoyment of the game of football".
James did not score against the Eagles, but the Colombia global, who joined Everton from Real Madrid in the summer transfer window, had yet another good game. People in football find it hard to accept.
The former England manager was equally scathing toward the easy awarding of penalties for handball when his side was the beneficiary for its second goal in a 3-1 win at Manchester United last weekend.
"I was very pleased with the team's performance", Hodgson said. I, the football, the Premier League, the referees, ourselves, I cannot understand how to think about coaches and managers, I think about the players, how we allowed this rule to be implemented is beyond me, it destroys the game of football, there is no question about it.
"I don't think the game I watched on TV before this game started was a penalty, Maupay handled it".
Carlo Ancelotti has praised the spirit of his Everton team and the start they have made to the new season, one which has yielded five wins from five in all competitions thus far.