The current reporting system is broken, players who never violated the ToS are getting banned despite trying to follow funcoms rules. For example more recently some friends of mine had invited an individual to their clan who then proceeded to use slurs in global chat. They kicked this individual for it but it was already too late, the damage was done. Everyone in that clan was permanently banned because of that one individual.
The current reporting system is broken and only exists for those players who abuse it in order to get an edge on pvp servers. Likewise dozens of innocent players are getting banned because of one bad apple that they have associated with and even if they attempt the dissociate with that player after the fact.
No other game with a reporting system works like this and the fact is that funcom staff is regularly duped into believing false reports like those which occurred on 1540 resulting in mass ban offs of even more innocent people. Obviously some of these people went on to buy alternative accounts to play on and I wonder sometimes if maybe that is funcoms goal to squeeze extra money out of people. I for one however refuse to give this company another single cent until they get their act together.
If funcom wants to moderate in game behavior than they need to develop an automated reporting tool that works within the framework of the game so they can obtain accurate information and timestamps and punish the actual wrongdoers rather than just waving the banhammer on anyone in the vicinity.