How can Verizon legally BLOCK my wifi hotspot app?

My phone upgraged to jb. Have called Verizon several times. I went into the store. They said they did not block it. My phone clearly states it has been blocked by Verizon.

If you have a Verizon unlimited data plan, you must pay for tethering.  I have the unlimited tethering plan for $30 per month.  This is in addition to your unlimited data plan and in accordance with the FCC ruling.  You can also get 2GB for $20, I believe.
"GigaOm adds that Verizon also won't be able to charge customers on its tiered data plans the $20 a month tethering fee, though it can charge those customers who are still on its unlimited data plans."
This is quoted from what you posted.

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