Yes, they are scammers, i had a talk to them on live chat, this is what they had to say:
P.S it's long so only read if you have time.
Code:
Allen R: Welcome to HostGator, how may I assist you?
Lewis Brand: Hi There, your plans look pretty interesting and im thinking of buying from you.
Lewis Brand: However, it has come across that your plans are too cheap to be true
Lewis Brand: how are you able to offer a proper dedicated servers amount of space on a simple hosting account?
Allen R: We can offer it, but we have mainly 2 rules in our TOS that prohibit most customers that do tend to reach near the end of the limit. There is an inode limit of 50,000 inodes and there is also a 25% limit of resource usage at any one time on the server.
Lewis Brand: So your saying that once they reach the end of their limit you will suspend their account? Isn't that false interpretations your offering then?
Allen R: You can use the full disk space as long as you don't exceed the limit of inodes.
Lewis Brand: Your also saying that there is a 25% limit of resource usage, what's that supposed to mean?
Allen R: This is related to server activity. Basically, you can't have an extremely highly active site on our servers.
Lewis Brand: so your saying, if i want to establish a professional site with thousands of hits a day i shouldn't go with you? Let's say it's a site where people upload pictures and view others and it's a whole organization site and there's a lot of space and bandwidth being used. Does that mean i should not go with you?
Allen R: Other webhosts have this limit as well. If your sites use too many resources, it is not suitable for a shared server because you are slowing down the server for many other customers. You should consider purchasing a dedicated server for your sites.
Lewis Brand: So your saying it's false advertising and I'm not going to get 300GB space but 50GB space and if i use over 50GB I'm going to get suspended so what's the point of using hostgator if I'm going to get suspended for using space which officially should be mine?
Allen R: You are misunderstanding my statements.
Allen R: You can host 300GB. Do not exceed 50,00 inodes on the server.
Lewis Brand: what is an inode?
Allen R: If you have highly active sites, you will be suspended if you hit 25% of total load on the server.
Allen R: A file is an inode. A folder is an inode. It is any item on the server.
Lewis Brand: so i can't have 50,001 files otherwise ill be suspended? What happens if i have a picture hosting site which is popular and everyones uploading pictures? My site will then be suspended and ill be shut down?
Allen R: Yes. You should consider purchasing a dedicated server.
Allen R: The inode limit is set by our admins. If it is exceeded, it will cause many problems for other customers on the same server.
Lewis Brand: Customers on the same server? But your giving me a servers amount of space here, if i upload 2 files that take up 250GB your saying that other customers will only have 50GB space? How will i know how much true space i have left then?
Allen R: You would be able to use the full amount of space.
Lewis Brand: But then won't others be loosing out?
Lewis Brand: I would prefer to get a 1GB plan and hosting 100,000 files then get your stupid 300GB plan and only host 50,000 so based on the facts and principles your telling me, i don't think ill be purchasing your hosting.