Sharing one Microsoft account with Microsoft 365 Family. Simple but illegal?

Hi mfessler,

technically it is possible as one license allows for using 5 devices of the same type (i.e. PCs, smartphones, tablets).

However, from a licensing perspective, only one person is allowed to use the service/software at a time on each device (https://www.microsoft.com/en-us/Useterms/Retail/OfficeinMicrosoft365/Family/Useterms_Retail_OfficeinMicrosoft365_Family_English.htm, chapter 1a (iv)).

Moreover, the following chapter denies using one device to indirectly enabling multiple users to use the software:

d.Multi-Use Scenarios.

(ii)Multiple or pooled connections. You may not use hardware or software to multiplex or pool connections, or otherwise allow multiple users or multiple devices to access or use the software indirectly through a device.

However, I am wondering why Microsoft restricts usage in such a way as this is a common scenario in most households from my point of view.