With the mountain of loop holes in laws across the WORLD, he has probably done nothing illegal.
For a start, I really dont give a crap about united states law, its over regulated bull----, the majority of it is just their to protect the governments revenues. I refuse to buy united states hosting anymore, and so should everyone else..
I don't think its good for your business to come in here attacking people who have signed up for your services with your name in your sig, no matter what the circumstances, especially over domain whois information, which is just a matter of inputting fields, them domains could belong to anyone..
Finally, If I was you, I would have already removed the legal loop holes in a terms of service stating what david has said above, regardless of law, a terms of service can forbid any action that may be a loop hole...
Yes I have kids, I find this sorta crap just as sick, twisted and morally wrong as anyone else would, but business isn't about emotions its about logic.
Logic says "This ---- is so disgusting, I dont care if its legal, I wont have any part of it, so I will write up a terms of service that states that clearly."
Also:
This is why if I was a person looking for hosting, I would never go with you.
&& whats funny is, he could take you to court for slander and probably win, think before you do things and do things correctly.
You can report people like this and get it properly investigated, there is a more than one agency that work online to try and rid child exploit material...
Also: My hate for US is the fact that they made trade deals about copyright for country's to update laws, when I feel that these child exploitation loop holes are FAR more important than copyright.