That sounds really harsh. Might be useful to give them a call - I'm pretty sure you'd already have it, but if not, the Adwords support number is 0845 358 0038. A bit quicker than the usual 2 day turnaround on email inquiries.
Maybe they've put the account on hold until they're able to check more closely on something. Or an overenthusiastic trainee doesn't understand tracking codes.
I'm off to search around and see what others have said, as you've got me concerned now that some direct-to-merchant PPCers are being hit.
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