In regards to the gentleman whose legal name is "Richard Gaywood" who we FNC’d earlier. Each day people try to combine "Richard" ("Dick") with various words and phrases to create ToU violating content. In this case, the individual was not trying to do that, it was their real name.
It’s unfortunate that this just happens to be the individual’s name. However there’s no context to explain to someone who might see it in a leaderboard or on Xbox.com that no, they aren’t trying to be clever, that’s their real name. In addition, the Code of Conduct also forbids the use of full names as a Gamertag:
Don’t give out information that personally identifies you (such as your real name, address, phone number, credit card number, etc.) while you’re playing. This includes voice chat and the names you create for your gamertag or mottos. This information could be used by other players for illegal or harmful purposes. Also, don’t give out the personal information of other players.
Emphasis mine. We give you a “name” field if you wish to put your real name in, that field isn’t autopresented on things like leaderboards, etc. like the gamertags are.
And to answer one last point, there is no "Script" or automated process here. We receive complaints from the community, review them against the terms of use, and take action if needed. It’s an impartial process we apply equally across many forms of content.
And for those who inevitably inform me that there are far worse tags on LIVE, *REPORT THEM*. :>