I understand where you're coming from, but I think they only way you'd really find out if its was ok or not is after you end up in court, in which case you've already lost even if you win. And the more people post things like this here, the more its going to happen.
The moment you need to hire a lawyer it starts getting extremely expensive, especially in the USA. I get a feeling the site can't afford it. I don't think its against the sites terms of service though, and its not up to me - it s just my opinion. Perhaps I'm paranoid though.