Is this really supposed to be more effective than an enforced legislation? It might work for one or two big names, but only until people get tired with the news of another bully. And you need it to work for all players, not the top one or two.

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.