This is loser logic. It's possible to play by self-imposed self-hindering rules, sure, but your competitors probably aren't. In business, you play the game that exists, not the game you want to exist. Politics is how you do the "game you want to exist" part.
And yet, the western capitalistic system that is built on private businesses acting in their own self interest, regulated by governments of the people enforcing social good, have created the least violent, least disease-ridden, most luxurious and incredible experience for humanity in history (or at least since civilization).
Frankly, calling it dystopic that businesses play by the laws as written is ridiculous. Change the laws instead of expecting businesses to self-regulate out of the goodness of their hearts. Why is that dystopic?
Since we're on the ycombinator chat -- do you think ycombinator disagrees? Do you think businesses incubated here are taught about "ethical and moral advertising at all costs" or taught about "finding market fit and scaling fast at all costs", even using aggressively successful a/b tested etc marketing that many would find distasteful?