netmeg - 4:05 pm on May 7, 2012 (gmt 0)
There are probably different laws depending on where you are, and maybe it's not legal everywhere. I am not a lawyer and I don't know. As LW says, in most of the cases I've read about, there was a clear and obvious breach of the terms of service present.
I've also yet to hear about a serious challenge by someone whose account was closed because of a "serious risk to publisher" type notice - in those cases, it seems Google usually does pay up to date, but refuses to continue displaying ads.
What I do know is, everyone in the program accepts the TOS, very few have read the entire thing (I admit I haven't read it myself since 2005 and I'm sure it's changed many times since then) and none of us probably have the resources that Google does.
I suspect lack of transparency might be a more compelling legal argument than "Google closed my account" - but again, IANAL.