Isn't the thing that not only were they selling a console mod, but one with its own console-bricking "protection" built in?
That sounds pretty shady and I wouldn't feel bad for Nintendo going after that.
But still what I read of people on youtube comments defending when console modders get hit "jailbreaking is legal."
Isn't it only legal to do it to your own console, that you paid for?
Pretty sure that since modding would usually involve firmware hacks, selling modded firmware would amount to selling any other unauthorized modification of commercial software (pretty sure firmware still falls under software copyright protection), in that, yes, the seller can get bopped for it.