What they're doing is probbly not illegal, in the US anyway.
I doubt that. And if somehow we've allowed privacy policies, that most people don't read, to govern appropriate use to the extend that they can be used to humiliate customers or circulate child pornography, then these types of software and service "agreements" need to be more heavily regulated and restricted. I would argue that any settlement of this case that doesn't potentially bankrupt Tesla is a very strong case for heavy regulation.
