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Yes, but they would then have to comply with the laws surrounding services, which are considerably more complex and restrictive than those for products. Which they don't want and don't do. They're taking the best of both worlds, and it's not legal.
And sure - the no-refund clause. This is bluntly and totally illegal. When you terminate someone's service, you are required to return the balance to them. Not doing so is fraud.
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