On the contrary. The Council of Trent "abolished" the practice. So it had to be Church policy at one time whether officially or unofficially. At least it was enough to cause a ruckus. Instead of telling Luther, "Hey, look we're sorry. You're right."; they kicked him out and excommunicated him. Only years later through the Council of Trent did they try to clean up the mess. I guess by then Leo had enough to pay for the Vatican.
Sorry, the Catholic Church owes Luther an apology.
Harley, Harley, Harley, I recognize and appreciate the effort you are putting into this, but I think your problem is that you are reading Catholic sources (note: New Advent is not an official Catholic source) not with a critical and objective eye, but in an effort to find evidence of guilt. Trent did not outlaw indulgences. Catholic doctrine, per Indulgentarium Doctrina 1, defines and indulges as; "An indulgence is a remission before God of the temporal punishment due to sins whose guilt has already been forgiven, which the faithful Christian who is duly disposed gains under certain defined conditions through the Church’s help when, as a minister of redemption, she dispenses and applies with authority the treasury of the satisfactions won by Christ and the saints".
The scandal you are referring to was the corruption of the practice of alms giving. There has never been any selling of indulgences.