Gamestop policy of building a full display of empty boxes

So, I'd like to discuss this "policy" that gamestop claims is because Nintendo "requires" them to do it. At least this is what gamestop employees claim.

My wife whom is not really into video games at all was at the mall the other day and went to the gamestop. She knew I was looking for a pro controller that has been sold out everywhere for a while now.

Not knowing any better she saw a full display of switches and pro controllers and grabbed a controller and sat in line to buy it. Only to get to the front of the line and be told that they were sold out and the box was just empty.

She lost her shit and called the company frauds etc. (Not a personal attack, directed at the company). Can you really blame her for such a bullshit policy that is bordering on false advertising? Not everybody that goes in to buy video games knows all these ridiculous policies, they just see a box in the middle of the store for the item they want and grab it.

I feel like this policy in particular has the potential to be pretty damaging to their reputation / business.

Are there any higher ups at gamestop or perhaps nintendo employees that could confirm, does Nintendo require this of gamestop? The employee behind the counter blamed it on Nintendo.

I don't recall seeing other big box stores doing this. (best buy hides all their switches away when they have stock or they did at launch) they didn't leave a bunch of empty boxes out to fake out customers.

I find it incredibly hard to believe, at best perhaps nintendo might say they need a box of each product on display (like in a window or on a counter)

I'm no expert though. so if anybody has the inside scoop i'd be interested to hear.