What I don't understand is how they think these "marketing" tactics will establish anything but a negative reputation for their brand. Seems to me like they are happily waving a massive red flag that says, "we break the law all the time and can't be trusted!"

Why can't they be trusted? Because they break the law?

Some people believe if a person breaks one law, they may be more inclined to break other laws.

I was implying the question; does breaking laws makes someone untrustworthy?

Yes, no, maybe. Irrelevant from a marketing perspective. It doesn't matter if you're trustworthy. If you are perceived as untrustworthy, businesses won't want to hire you.