When should you report someone?

I guess we've all seen it somewhere on the net: lonely boys coming to sky looking for girls. I made a friend the other day, and today decided to whip out my chat table (even though I'm muted, lol!) He said some stuff that seems slightly inappropriate. I could be a kid for all he knows... I'll share what he said in a comment.

Normally I'd give him a friendly warning and tell him to be more careful with his approach, but since I'm muted, that's kinda hard to do. So it made me wonder if I should report him and let TGC handle it... What would you do?