Quote Originally Posted by FutanXIV View Post
Probably just there to cover their ass. Doubt it'll be enforced.
It's common stipulation for most MMO's and they do enforce it, but only if the name is noticed (e.g. reported or you run past a GM whos in the area and notices it).

But as others have said you just get given a forced name change. Unless you repeatedly do it then it will escalated to more serious matters.