That's not an inherently bad practice. I'd much rather there be two way flow between industry and government than have people who have never tried to run a business doing regulation or those who have never worked in government trying to comply with regulations. Strong ethics rules and culture is the way you manage the downside, not bans.
The hell do you work where ethics culture exists in business? I gotta be looking in the wrong places, because all I ever see is lip service granted to ethics until they threaten the bottom line, then suddenly they disappear.
right, it worked really well for the 737 Max: https://www.seattletimes.com/business/boeing-aerospace/how-t... | https://www.pogo.org/commentaries/corrupted-oversight-the-fa...
and the 2008 financial crisis: https://sunlightfoundation.com/2008/11/24/the-revolving-door...
just to name two obscure examples that had some small impact on society