Bungie actually has a help article available which outlines their ban and restriction policy. You can find that here:
https://www.bungie.net/en/help/article/11929
Having a bad connection constantly (to the point where the experience for others is being ruined) is enough to warrant a restriction. Reporting these players is the best action you can take. More information can be found here:
https://www.bungie.net/en/Help/Article/12960
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Thank you!