It does. Both need to be at least 25% though. Best way to demonstrate would be this vid...

https://twitter.com/i/status/1000944472740556805

It's also a method to allow you to damage other dinos of the same species though. Say you're taming a Rex, and want to kill another Rex that's in the area. Hit your Rex with a Scent and it'll stop considering the other Rex as an ally for a while.

Hmm, it might be better to reword that ingame; something along the lines of "Prevents aggression between dinos that would be amicable to the user and dissociates them from their brethren."

Also doesn't make any sense to me
Is this so you can approach carnivores w/o them attacking you??

Interesting idea! I was also very confused by the description - rewording would be really helpful.