The market doesn't tend to work that way. Maybe some people will avoid Uber when they are actually having that one night stand....but you think significant numbers will boycott the service altogether on principle? I've never known that to work.
If the above does not speak sufficiently: think of the efficiency loss caused by everyone having to watch who's the latest culprit in any market they enter... I'd never thought I'd ever advocate compliance & legislation -- but this is just a perfect case for it, also from an economical perspective.
The government is like a lion. If you're having trouble with a pack of wolves, let loose the lion and the wolves will be no more trouble. But from then on you won't be able to own any small pets, you're responsible for feeding the lion and you'll spend the rest of your life having to fear that it will turn on you.
When you have serious trouble in the market (like an abusive monopoly or industries causing fatalities) then you call for the lion. When you spot a mouse in your house you put out some traps and get a terrier. And you're asking, wouldn't a lion be more effective at catching the mouse? Maybe it is, but then you've got a lion in your house. Effectiveness is not the sole criterion.
> think of the efficiency loss caused by everyone having to watch who's the latest culprit in any market they enter...
"The price of freedom is eternal vigilance."