The Freelancer, by server rules cannot shoot the smuggler unless there is a bounty on the smuggler. There isn't, so the Freelancer was breaking a server rule. That is Chopper's point, you are allowing a person to break server rules and it seems you are fine with it.
An official faction supporting the violation of server rules is a perfectly valid question in a feed back thread. Remember, feed back isn't just about your RP, it is also about your behavior in game and on the forums. Among many other things.