A walled garden or other short term security move should be fine but an explanation, either email, web or phone call should be made explaining the problem and recommending remedial steps. Decreasing speed seems like punishing the victim.
The problem is that if the government gets involved then it opens up questions concerning liability. Will ISPs be sued for damages if their customers get infected? I would suggest that if the government makes an industry recommendation and it's not followed...there is certainly potential.
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