I do. That's probably why I won't be running an effective business any time soon. Being nice and not fucking people over doesn't get you far in highly competitive markets.
I strongly second what 'nitrogen wrote[0]. This is very much about ethics.
> Is it ethical for a shop to advertise its products in the shop windows when the people running the shop know that there are higher quality products available in a competitors store?
In my opinion, no. Basically, if you know your product is shit, you are morally obliged to make it better or find something else to sell; lying to people to make them buy your stuff instead of something objectively better is fucking them over for your own gain.
Think about it the next time you find yourself on the receiving end of such businessmen.