Earlier quoted context omitted.
every isp ever since the dawn of the commercial internet oversells its capacity, you rely on 98% of the users not actually trying to max out their circuit at near line rate 24x7. if they did not do this an ordinary residential last mile connection would be $250/mo not $50/mo.
An entire (sub)industry being predicated on fraud doesn't make it not fraud, and doesn't make it okay. If you can't actually sell that capacity, just say up front what you're actually selling people.
'Fraud' is too strong of word. Almost everything in the world has some level of over-subscription. I don't know for sure BUT if every person and business turned all their water taps on full blast, I think we may have a problem.