ChatGPT runs moderation filters on top of your conversation and will highlight responses or prompts red if it thinks you're breaking TOS. The highlight is accompanied by some text saying you can submit feedback if you think the moderation is in error. It's not very hard to trigger moderation--for example I've gotten a red text label asking the AI questions about the lyrics to a rap song with explicit lyrics.
It's interesting to compare ChatGPT moderation to Bing. When Bing generates a "bad" response, Bing will actually delete the generated text instead of just highlighting it red, replacing the offending response with some generic "Let's change the topic" text. The Bing bot can also end a conversation entirely if its a topic it doesn't like which ChatGPT doesn't seem to be able to do.