I’m surprised American ISPs aren’t bringing the hammer down on this, as I believe they claim they have the right to prevent users from sharing their internet connection.
I don't think they have any reason to. If a customer wants to share their connection, they're still paying for the bandwidth. If they share it with enough people that they exceed any data caps, that's more money they will need to be paying. Sounds like a win for the ISP to me.
Ah, but if the sheep don't know a chunk of their bandwidth is consumed by someone else it can be used as a dark business pattern to help upsell a higher tier of service.