The piece I quoted was from the site's Terms and Conditions. This was an unannounced change not long after GS became a pay-per-click service.
I objected at the time because the change to the T&C broke two of its own 'rules'; that such a change be announced and that users should have the chance to reject the modification to the T&C.
I think admin did say at that time that if sellers were not happy they could close their account and get a subscription refund in accordance with the T&C. As that is the sum paid less the sub cost for each 7 day period used (or part thereof) and cost of goods (T-shirt), then most users wouldn't see any refund.
eBid do not pay to upload to GS. The costs arise when someone clicks on an item on GS that takes them to eBid. So if a click-through does not result in a sale then eBid's money is wasted. You may appreciate that if a seller is getting a lot of GS hits but no sales then eBid are going to question if their money might be better spent elsewhere (e.g. on increasing the GS presence of other sellers). As far as I am aware, eBid do give sellers the chance to review their listings. If that does not improve matters then they will, understandably, stop throwing good money after bad.