Their argument is that violating a website’s terms of service is equivalent to accessing the website “without authorization and in excess of authorized access”, and is thus a federal crime in violation of the Computer Fraud and Abuse Act. This radical, convoluted interpretation is a cataclysmically bad idea. It twists the law to the breaking point, and sets one of the worst precedents in the history of the internet.
This is how bad it is: MySpace is dictating federal law. Under their TOS, anyone with inaccurate personal information on their profile could be prosecuted for the same crime. And this isn’t limited to MySpace; any website’s TOS would be enforceable under the CFAA. Hardly anyone reads the Byzantine legalese of TOSes, and the consequences of disobedience now reach far beyond simply having your account deleted.
I could draft a TOS that says “no bitching about all the pink”, and if you criticized the color scheme, you could be imprisoned for five years.