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I agree, this is borderline false advertising and potentially damaging to a companies business.
It is NOT monitoring the hosting company it is monitoring individual sites and already I don't want to do business with a couple of hosting companies on there based on this report. Even though I know it COULD be something else, I don't KNOW that it IS something else.
What if someone has their own unmanaged box and fucks their own stuff up? Bad report on the HOSTING company.
What if someone doesn't pay their bill and rather than just rushing in and deleting everything on their site (as suggested) they want to give the customer an opportunity to pay and not lose everything.
There HAS to be some liability issues here somewhere.
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