You got that part right, you are not in a position to have any opinion on this matter or similar cases, maybe you don't know it but let me explain it to you. merit distribution is manual because we were supposed to stop account farmers, but there are too many accounts already registered so the only thing merit helped to stop is preventing more account farming. somebody who asks for a few merits is not going to farm accounts with it, therefore tagging them to show them as if they are scammers is not right.
OP could be a newbie with no experience, instead of tagging them with red, tell them to stop asking for merits or just tell them to fuck off, telling them to fuck off would require less effort than leaving a negative feedback. if you are a merit source and don't want to be bothered with these situations, ask somebody else to take your place.