If you're on eachothers friends list, the auto filter is disabled. If you're not, it will auto warn for such words.
The auto filter goes on content not context, not everyone uses those words in a nice way or in a humourous sentence - so the system can't detect whether you're using it to describe something, or calling someone names. Also, whats seen as acceptable language for some, is seen as inappropriate for others.
It is an absolute joke with the game chat. You got warned because you used a "cuss" word (SHIT - even though it is allowed on TV lol). I got the same thing for saying CRAP and ASS haha. Apparently this site is catered to 10 year old kids and they don't want "potty mouths" running a muck. If you don't like what your opponent is saying (regardless of if its bad or good) you always have the option to disable the chat.
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