I think the manufacturer was worried that people would use a full spray, and get not only the collar, but the cat's fur as well. And yes, it should NOT be sprayed on the cat.

With a little practice, you can do a slow squirt so it doesn't spray all over...you might even want to remove the collar, shake the bottle and put a wee squirt in the collar, then put it back on the cat.

My vet loved this idea...and I did it with Oscar for over a year, with no ill effects whatever.

I think the key is to squirt, not spray, the Feliway. But by all means, do what makes sense to you. This is only my experience.