This was done constantly in XI, it wasn't against ToS there as it was non stop by the same few people. No one was ever banned from it over the years I played unless they were able to constantly reroll the same character name with instant 75 status.

Don't see it here much (thankfully) as it was very annoying in XI. If you are /sh or /s spamming I know its a good way to get yourself blisted by a whole lot of people in a very short time. So not sure if the risk is worth the reward if you are a super social player who likes to do stuff with pugs on your server.