Acharya Prashant explains that the law of karma is widely misinterpreted as a system of rewards and punishments or a karmic account of debits and credits. He clarifies that the law of karma is actually the law of the doer, or the 'karta'. The fundamental principle is that the actor and the action are inseparable. Therefore, one should not focus on correcting actions or worrying about results, but rather look inward at the state of the doer. If the actor is flawed, any action they perform will be wrong, regardless of societal approval.