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Steam :: Introducing Steam Families
(steamcommunity.com)
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That's only for VAC games, right? The historical advice given by modders is to share your library, and use another account to mod it. If you accidentally login to the online portion of a game with a mod enabled, only that account is banned not the library owner.
This specifically says that getting banned on a shared account will also ban the owner who shared the game. Likely to prevent exactly what you described, where people could evade bans simply by sharing their library with a throwaway account.