From the section entitled "MISCELLANEOUS"
"You acknowledge and agree that you are not permitted under any circumstances or for any reason to cheat or utilize third-party games or code in order to win at, or gain Neopoints or Items from any Neopets game. You agree not to design, disseminate or use any third party programs designed to change the game play on the site including, but without limitations, programs such as autobuyers, flash game cheats, autofreshers, and snipers. Any use, dissemination or design of such programs is a breach of these Terms you will be responsible for any resulting damages to Neopets. You agree that if you disseminate, design or assist in the design of a third party program that changes the game play on Neopets, you will pay Neopets, Inc. liquidated damages in the sum of Fifty Thousand Dollars for each such program as liquidated damages. You agree that if you use such a program on the neopets.com website, you will pay Neopets, Inc. liquidated damages in the sum of Five Hundred Dollars for each time you use a program."
O.o
Are they bluffing?
Sure, people get frozen... but I haven't heard of anyone getting fined.