Companies tell their customers (i.e. people who wish to bypass streaming service region restrictions) that they "ethically source IP addresses". The people who provide the IP addresses (i.e. people installing f2p games on their phones or smart TVs that come with the VPN exit gateway SDK) don't know that, because no one reads the T&C.

In the end, both are deceived. The customer thinks there are no ethical issues attached to their VPN provider, the ones whose IP addresses get abused don't even know what's going on.