Forest have been docked four points for breaching the rules, while Everton were also docked ten points reduced to six on appeal.
"It's not clear to anyone who follows football, fans and the clubs themselves and it ends up creating that chaos around it," said Faulkner, who worked for Forest in 2014-15.
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"Luton could invade the pitch, celebrate staying up, people have one of the greatest days of their lives and five days later get told 'Sorry, you're relegated'. It damages the competition.
"We might have to wait days after a season finishes. It's like waiting for VAR. They have got themselves into a real mess, which is a shame."