I think the more important issue in here is that Cloudflare forward the personal information of anyone who complains about the site to the site owner. Other major providers don't do this, and it's not clear that people filing complaints know what they're getting into.
> CloudFlare will notify the site owner and, where appropriate, the web hosting provider for the site in question.
That being said, it's in body sized font, in a huge block of text, and if I wasn't looking for it, I wouldn't see it.
So, it's "stated" but probably not very clear that abuse reports may be forwarded. As a webmaster/previous ISP, I expect (again, prior knowledge here) that abuse complaints will be forwarded. But, does the average person? Probably not.
My $0.02 - Cloudflare states it, but they need to make it much more clear if they intend to keep the policy, or possibly revise the policy. However, bad UI seems a weak reason to vilify them.
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Edit: Actually, they state it twice - including right before the submit button in larger font size. It's pretty hard to miss.
