I believe it is probably "merely" unethical, as I'm sure that was stated somewhere in the fine print. However, I personally don't believe the distinction matters to the kinds of discussion we're seeing in this thread, which seems to be a lot of "everyone does it, so it's really the customer's fault that they didn't expect the party on the other side of the transaction to be deceptive."
The way I see it, this conduct is antithetical to the spirit of the free market and harmful to society at large, regardless of whether or not it can be defended in court.
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