Observe. A normal DNS server dealing with a non-existent domain:
UPC's DNS server dealing with a non-existent domain:

... And the awful consequences:

This isn't just irritating money-grubbing on UPC's part; it also has the potential to be a real problem for some people. In particular, some VPN systems use various DNS tricks to figure out when they should activate; this could break them. Various other issues exist. There is also no clear way to turn it off. Ugh, what's next, inserting their own ads into webpages viewed? One US ISP actually does this.
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