Possibly, but that's basically the applicants choice to go ahead and apply (within the normal confines of "choice" in work). At lest there is a bottom they can expect. This won't even be that often if the company is actually upfront about how it determines pay: Higher for x qualification, lower without the optional qualifications/experience.

On the other hand, some folks will be happy about that bottom since it will be either more than they expected or more than they are making now.