No? If I went into a store to complain and my first words were "what kind of shit have I bought here?", then I don't think I'd have any cause for complaint if I were forcibly ejected and told to come back when I'd learnt how to behave myself. Same should apply online.
The product wasn't confiscated though, only the service was cancelled, and a refund was offered for returning the product. This is the main point a lot of people are missing here.
As it stands, this is how ANY court of law would see it as well.
If you've already sold them the product, you really cannot do this.