I'm not claiming that you're wrong because I don't have any data to the contrary, but "They wouldn’t do it if it didn’t work" isn't a strong argument. It's only true assuming rational actors and perfect information.
It is quite possible that the successes are more visible than the failures and thus it seems like it works. Or it "works" for the sales rep because he gets more leads and thus a bigger bonus, while hurting the company - but the company hasn't figured that out yet. Or it works in the short term but isn't worth the reputation damage in the long term.
Of course it's also possible that it just works, just pointing out that reality shows that people and companies often do things that are just stupid.
It is quite possible that the successes are more visible than the failures and thus it seems like it works. Or it "works" for the sales rep because he gets more leads and thus a bigger bonus, while hurting the company - but the company hasn't figured that out yet. Or it works in the short term but isn't worth the reputation damage in the long term.
Of course it's also possible that it just works, just pointing out that reality shows that people and companies often do things that are just stupid.