I had a failed startup where we warned our customers they were using suppliers without sufficient qualifications, insurance, etc. Nobody wanted the product, even for free. At a system level, they chose to use cowboy tradespeople and cover the risk with "plausible deniability", because the market wouldn't pay them to only use quality.

It's like a Gresham's law - eventually the lowest quality dominates the market, because that's what maximises profit.