To "allow" it, and to "approve" it, are two different things. Fact is, CL never did "approve" of it, but people did it anyway. You might want to recheck the TOS you agreed to before using their site. As with most anything else that gets overly abused, they eventually make it a law, much like speeding. People with no regards for it might get away with it for awhile, but will eventually get caught. Using photo hosting sites might not be as big a deal to them as data mining, such as page hit counters, which also retrieve users IP addresses etc, but I suppose, depending on the level of abuse, they will eventually decide to address it in any way they can.
If you've never visited their Help Desk forum, you've missed a lot of threads there asking "why was I flagged?", and "why is my account locked?", and usually excusing themselves with "but everybody does it!". Often the answer they get isn't what they wanted to hear, usually in the form of "tell that to the judge the next time you get a speeding ticket" ; )
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