karvind writes "Chatmag News reports that Yahoo! has disabled all the User-created Chat rooms. According to Yahoo's chat log page:'The ability to publish user-created chat rooms in the public Yahoo! Chat directory is currently unavailable. We are working on improvements to this service to enhance the user experience and compliance with our Terms of Service'. This may be true but Yahoo! is also facing a $10 million lawsuit that accuses it of cashing in on some disturbing chat rooms. The companies are paying huge fees for their ads to appear on Yahoo!. But many are now canceling those ads because of the report."