Dyche has been frustrated by how the referees have dealt with his team this season and claimed on Thursday that Burnley have not received as many penalties as they deserve because they do not magnify contact in the penalty area.
The 43-year-old said the issue stems from the increased acceptance of diving in England.
"One prominent manager - and I'm not going to name any names - told me, 'You should get your players to move with the times [and dive]', but that's not my belief. You should play the game properly," Dyche said.
"I'm not suggesting that all managers have encouraged their players to do it, but it's something that has crept in over the last 10 years and this season has really opened my eyes to it.
"I can't believe that retrospective bans for simulation have not been introduced already. I'd like to know the reason it hasn't been brought in, or if it is really getting looked at in depth.
'We talk to our kids about fairness and playing the right way, yet in one of the most powerful leagues in the world there are people dropping like flies everywhere.
"Weirdly, you open a debate about Raheem Sterling doing this, that or the other, but something that goes on every week, and is there for all to see, is sort of accepted. Strange, isn't it?
"If we had retrospective bans for simulation it would evaporate from the game in two or three weeks because managers with amazing players would be saying to them, 'I can't be losing you for three games'."
Burnley sit 19th in the table with 26 points, two positions and two points from safety, with six matches remaining.
Dyche's side travel to Everton on Saturday.
