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The fact he wasn't even really punished gives me a pretty good opinion, and the fact I was lied to about the purchases being final instead of being directed to reporting a problem on iTunes for a refund request.
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He was warned. He said something not necessarily right or polite. How is that not enough?
Also it is possible that they had no idea. I only learnt you can do that just then, when I read your post. Honest mistake, perhaps.