Rare for people who don't deal with encoding and decoding maybe.
To be clear the codec implements the compression (or other encoding) algorithm. So when talking about codec's we mean the implementation. But when talking about the algorithm, we are talking about the standard of encoding the encoder or decoder implements.
> Rare for people who don't deal with encoding and decoding maybe.
No, rare in general.
It's a layman's co-opting, and laymen outnumber specialists in every field.