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On May 1, some new Terms of Service for Microsoft will take effect. The new Terms seem to have a few parts that say Microsoft has the right to ban you from services such as Xbox and Skype if it finds out that you've been using offensive language.

The fifth item listed in the "Summary of Changes to Microsoft Services Agreement" states the following.

So what will Microsoft consider "offensive" then? The jury is still out on that one. However, they do note that they can potentially investigate alleged violations of the Terms, which means they could go through your private documents and correspondence to do so. This comes from the Code of Conduct section. Specifically it's under part 3, section b. (Enforcement) of the new agreement.
When investigating alleged violations of these Terms, Microsoft reserves the right to review Your Content in order to resolve the issue. However, we cannot monitor the entire Services and make no attempt to do so.

So are they saying that if you aren't an ass they won't have any reason to even bother with you? Sort of. It seems to me like those who aren't toxic 100% of the time will have nothing to worry about. It also seems to me like those who do not publicly share questionable content are probably okay for the most part. Will they go after you if you happen to use a few swear words in a review you write with Microsoft Word? Probably not. What's that terrible argument that people like to make with stuff like this: If you aren't doing anything wrong, then you have nothing to hide, right?

CSO Online feels as though this move may be in response to (Fight Online Sex Trafficking Act) FOSTA and (Stop Enabling Sex-Trafficking Act) SESTA being passed by Congress. These bills have already caused sites like Craigslist to shut down their Personals section and Reddit to remove a number of sub-Reddits. If true, this seems like the only appropriate response Microsoft could have made to these largely idiotic moves (EFF.org) by Congress.