Does diffused reflection means the failure of the laws of reflection?
No, it does follow the law.
Irregular or diffused reflection takes place from an irregular surface. In diffused reflection, the reflected rays are not parallel to each other for parallel incident rays. This happens because of the presence of irregular microscopic surfaces. Hence, parallel incident rays reflect in different directions. However, each ray obeys the laws of reflection. Therefore, laws of reflections are not violated in diffused or irregular reflections.