Amazon accuses customer of racism & shuts down their smart home

I work in IT and I keep a baseball bat handy in case I suspect a device has gone online.

However what a ridiculous situation on Amazon's part and it raises a bigger question. Even if this guy was 100% a racist shitbag, should he have had his Amazon account suspended unilaterally in the first place? Should someone have their bank account closed too then? How about utilities? I obviously am not agreeing with someone being racist but think that allowing corporations to impulsively take punitive actions is a slippery slope. Next thing we know, Amazon will be offering capital punishment as a service.

I'm of the opinion the "smart" home thing was just unintentional secondary, I can't imagine them being smart enough to do so on purpose.