There has been a lot of contention and people throwing out wild ideas of what they believe the Player Report system does. Mojang has created two separate articles expanding on how the system works and I'll be condensing them below.
Keep in mind, that these are not my opinions, the Minecraft Forum is not owned or influenced by Mojang Studios or Microsoft. Some responses are not a direct copy and paste and have been shortened. To read the entire responses in full these are the links to the two articles mentioned that my own article is covering.
Addressing Player Chat Reporting Tool
Minecraft: Java Edition Player Reporting FAQ
Common Misconceptions, Answered Questions, and Information
What technical measures are there to prevent messages from being forged?
1.19 introduced cryptographically signed chat, which prevents the forging and/or rearranging of player messages. Any message that has been forged will be flagged for their investigators.
Why has this feature been implemented?
This feature has been added to ensure the safety of players during online interactions. These safeguards have been put in place to keep their online service safe and welcoming to everyone.
Can I get banned for swearing/profanity?
No. While the first iteration of the Player Reporting feature did contain the category to report someone for profanity it has since been removed. Keep in mind, that hate speech, threatening others, bullying, sexual solicitation, or harassing others is not permitted.
Will you ban people from talking about suicide?
No. There is a difference between discussing a topic and suggesting someone do this or stating that they plan to do this themselves. The Player Report feature used here is to attempt to provide players in this crisis situation with support and resources.
Does this affect private servers?
Yes. While private servers are not run by Mojang, each server still has to accept and follow the EULA, Commercial Usage Guidelines, and Community Standards.
Why does Mojang need to be involved in third-party server player reporting? Why is this feature not only applied to Realms?
All players are bound by the Community Guidelines and not all servers provide a way to report or resolve these violations. Server Owners can still moderate their own servers the same as they always have. Not all server owners have time or resources to review their own server reports.
Can I get banned for what I say in singleplayer?
No. This feature is only available in multiplayer.
Is my online chat being monitored?
No.
Are you Using Bots to moderate my chat?
No. All reports are player made. There is no AI scanning your chat logs.
Is this a player-censoring chat filter?
No. This system is not blocking messages from being sent.
Can someone create a report without evidence?
No. When creating a report you must select the offending chat messages and category to submit.
Can my messages be taken out of context?
When a report is sent, surrounding chat lines are sent along with the report as well. This gives the investigator more context for the report.
Can I get in trouble for submitting a false report?
Players are responsible for the reports that they create, and abuse of the player reporting system can lead to temporary or permanent bans, depending on the severity and frequency of the abuse.
What if someone gains access to my account?
Unfortunately, if an attacker has gained access to your account, they would not be able to distinguish between you and them. That’s why it’s important to enable 2FA, use a strong password for your account, and don’t install untrusted mods or programs.
Banning and Suspensions
What does being banned/suspended mean?
While banned/suspended you will not be able to connect to multiplayer servers or Realms in past, current, or future versions of Minecraft. You can still play single-player.
Will I know why and how long I am banned/suspended?
Yes. A reason and time will be displayed when launching the game in version 1.19.1 onward. For older versions, you will see the message displayed when attempting to join a multiplayer session.
Are all bans permanent?
No. They vary from a temporary suspension to permanent. Most bans should be temporary with varying durations based on how severe and the frequency of the violations. Permanent bans are reserved for the most severe or reoccurring abuse violations.
Why is this an account ban and not an individual server ban?
Those that purposely violate Mojang's terms require broader action. This is to prevent them from continuing to do so across the service.
Will I get banned without my case being reviewed by a human?
No. Each report will be reviewed by those trained specifically to investigate reports in Minecraft called investigators.
Can I appeal a ban/suspension?
Yes. You can submit a Case Review Request here.
What if someone gets me banned unfairly?
All player reports will be reviewed by an investigator to make sure the complaint is well-founded so that any suspensions or bans that might result are fair.
Their investigators are aware of the kind of things that happen in Minecraft and the possibilities of misinterpretation – for example, chat messages that relate to combat or other in-game situations. Their investigators understand chat messages can have different meanings depending on the situation and consider that context when reviewing reports. Their investigators also follow the same strict privacy procedures that Mojang Studios follows to protect the privacy of information contained in Player Reports.
If you feel that you’ve been banned unjustly, you may submit an appeal at Case Review Request.
False Bans & Abuse of the Feature
Will I be automatically banned if I am reported by a lot of players? What about content creators or famous individuals that may get targeted?
No automatic bans will be made. The volume of a report on a player does not affect this. The reports will review the chat evidence provided before an action is taken.
What if someone creates a mod that spams/fakes reports?
- Abuse of the report system with multiple/fake reports will result in action taken against the reporter including temporary or permanent bans, depending on the severity and frequency of the abuse.
- Reports cannot be anonymous, and they must contain valid evidence of an abusive chat message from within the game, and a category for that abuse.