Comment Terms of use seem pretty clear (Score 3, Informative) 453
The terms of use seem pretty clear:
The Service may only be accessed with an original Xbox, an Xbox 360 console, a personal computer, or other device authorized by us, or by logging into your account via Xbox.com . You agree that you are using only authorized software and hardware to access the Service, that your software and hardware have not been modified in any unauthorized way (e.g., through unauthorized repairs, unauthorized upgrades, or unauthorized downloads
Refund Policies. Unless otherwise provided by law or in connection with any particular Service offer, all charges are non-refundable and the costs of any returns will be at your expense. There are, however, certain circumstances under which you may be entitled to a refund for certain Services.
So what part of that seems unclear enough that it warrants a lawsuit? If you don't agree with terms of use, don't sign up for the service then whine when they catch you violating the terms of service and terminate your account.