I will be the first to admit that I am not a businessperson, but I would predict you're not going to make many friends here standing on "the rules allow us to do this" and "everybody else does it". That's the weakest possible defense, and shows you're not really hearing why people "are pissed about it".
At least he is answering honestly. And everyone seems to dislike honest answers. Looks like people only want to hear some lies wrapped in nice promises, which would never materialize.