Microsoft can forcefully take away Xbox Live Gold membership?

I have not dealt with this myself but my friends Xbox Live membership has been taken away 7 months from the expiration date. His original account has been permanently banned (People send him mean messages and he sends one back and gets banned, which lead
to a perma ban over the year) and so he used a second account to play online. He used the gold from the other account (since it's shared on the console) but it has been taken away without warning. He then bought a month of Xbox live on the second account,
which is not banned, and it was taken away just days after he purchased it.

My question is this, can Microsoft take away Xbox Live from accounts that are banned or from accounts that aren't even banned just because they are on the same console? Is it in the terms and agreement to do so? I believe it is unethical and especially unethical
to permanently ban an account, not allowing a player to access all their online games they have bought, making hundreds of dollars (potentially a thousand if you really start adding up AAA games over the years) spent on them go to waste. And all of this just
because of some bad mouthing on messages.

I would really like to know how they are allowed to take away someone's Live status from an un-banned account because that completely seems out of line and potentially illegal if it is not directly outline in the terms and agreement that they can do so.
It also would not be the first time a company has been sued for something and lost even though they said it in their terms and agreement, just because it's there doesn't mean its just.

:)

 

Gold Membership blockedC

Take of your tinfoil hat no one is blocking you from getting Xbox live gold, if you can use the services elsewhere then go away we won't care, Microsoft won't care.

 

FORCEFULLY CHANGED MY GAMERTAG

my gamertag was forcefully changed ( ZzBush911zZ ) this is now the second time it has happened i refuse to keep paying money for a service i am not receiving this service that is forcefully being taken away from me. I think it is disgusting how an individual
can report my gamertag and it forcefully be changed and leaving me with no say for something that i paid for. If said gamertag was offensive the system should have not allowed me to change it in the first place. this is not fair at all.

 

Xbox staff do not have the right to revoke live access the only people that can do such a thing is XBLPET (Xbox lives policy & enforcement team) and yes they do have the right to do that when you were caught using the banned accounts xbox live. That violates
the COC nothing here is illegal and yes they have 100% all rights to revoke your games when banned. All statements can be found
Here' you and your friends agreed to the policy upon sign up.

All i recommend is going
Here' to request support for the account and see if this is a misunderstanding.