[born2discover]

Understandable yes. But within their rights? I doubt so. Contracts are binding for both parties (client and the company). What they are doing here is an intentional breach of contract. Depending on the jurisdiction it can have nasty legal ramifications.

[possiblydrunk]

Thanks. Didn't know that. Just assumed that most tech companies' TOS includes a line reserving the right to terminate service at their sole discretion.

[nojonestownpls]

Terms of Service aren't necessarily legally binding - it's up to the judges to decide how much validity to give to them. Here, given they're offering refunds (and it's likely an American court that would theoretically handle this anyway), it's unlikely to have any serious consequences to the company (in legal terms).