The issue is it reduces information availability to customers: if a customer finds a brand that produces high quality products that they know from experience th

The issue is it reduces information availability to customers: if a customer finds a brand that produces high quality products that they know from experience they can trust, that trust can't propagate forward in time because the incentive it to abuse it for short-term profit, which is a net negative overall because the customer needs to find the new high quality product on the market, something that costs time and comes with risks itself. It's a market inefficiency.