Two Kentucky schools have institutionalized grade inflation in order to fake better results. They have eliminated D's from their grading system.
I did something similar with my kids when they started school. I told them D stood for "dead" and that they didn't want to know what F stood for.
But being non-violent types, administrators at no-D schools are telling teachers they get D students back for a repeat unless they bump them up to a C.
There are, of course, no indications this policy does anything good for anyone.
Putting students with a D in in-school suspension would be far more effective at incentivizing achievement.