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Courts are slowly placing more responsibility upon ISPs and newsgroups for the content within. It would certainly be wise at this point to inform your drug dealing mudders that such discussions will not be tolerated. Violations of your warnings should be dealt with accordingly.
Now, are you actually likely to get in trouble because of the conversations? Probably not. However, in these sorts of instances it is certainly best to choose the safe path, which is to disallow such conversations on your mud.
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