Even if they find that someone who has filed an appeal hasn't transferred any copyrighted stuff, I bet people won't get their $35 back most of the time. It will happen the same way as mail-in rebates or perhaps other forms of corporate refund.
Maybe they will require $35 to refute each individual instance of supposed infringement and then only give you a refund as a credit on your bill, meaning that you will have to remain a (probably now throttled and therefore highly profitable) customer for a long time to get your multi-$35 fees back. Switch ISPs? Sorry, no refund. All the while of course, they will be getting interest on your fee money, while you won't be. You might even be paying interest on it if you had to borrow it.
Maybe the appeal phone number will be staffed from 9AM-3PM Bangalore time by a single elderly, asthmatic Indian woman with severe hearing loss.
$35 is about the same amount that banks charge for late fees on CCs, presumably because it is about the maximum they can charge before people start spending lots of both parties' time trying to get the money back.
This is all stuff sociopathic corporations have pulled before. As far as I know, it still isn't illegal. Nobody should give them a single sent in refutation fees.
I'm sure the MPAA/RIAA companies and the ISPs who also plug their own "on demand" services just love this. If you get throttled, not only can you not use the bandwidth you paid for, you can't realistically use any legit streaming services like Netflix or even watch YouTube either.
It just occurred to me that this might not even just be about torrents. Maybe they will throttle anyone that, say, watches a YouTube video that contains some copyrighted music in the background. Sure, they are robo-spamming Google with DMCA takedown notices about the video too. Or maybe they will stop that, since they haven't had a whole lot of success with stemming the flow of free content that way. It would be easier for them to just throttle essentially everyone who streams any content at all, thereby basically turning the internet off for their captive customers as a content distribution system.
Maybe this is just a prelude to new MPAA/RIAA sanctioned streaming services via the "on demand" ISPs. "Want to watch what you want when you want without being throttled for stealing movies? Join Cramcastic for only $49.99 / month and get as much guaranteed genuine content as you want! (fine print)(Up to your monthly cap.)(/fine print)"