Nothing can happen! The guy is talking out of somewhere unmentionable in polite company. In terms of speed, I would assume you were falling foul of TTs throttling, some ISPs consider all p2p usage to be very bad, a point for you to consider int he future.
Put your mind at rest, Your use of p2p is legal in that the distro you were downloading was (I'm sure) Freeware. TT really don't have the best reputation for customer service, and this only damages it further, if the CSA you spoke to really believes what he said to you then his training and knowledge are woefully inadequate, but I suspect a more mischievous motive, and he is lucky it wasn't me he tried to pull that line on as I would have been on to his manager about such statements. IMHO the guy needs to be fired PDQ.
Ignore the muppet, just migrate to a better ISP.
Any ISP that thinks that selling my click traffic is acceptable is MisinPHORMed
Market 1 (IPSC) - a BT group investment NOT Spot