One thing that seems to be an assumption is that the "company" needs to provide the explanation. I think it is even better if the user provides the explanation. The assumption a user can't provide it is probably because we've all seen Terms of Service agreements that are totally opaque.
Back in the day when I was doing a bit of admin work, I decided to simplify our TOS, and then when I had to block someone, I just kicked the ball back into their court: "If you would like your account restored, please point out in the TOS what rule you violated." It worked better than expected. People that cared enough about their access to the system usually figured it out pretty quickly, and we got the knowledge that they actually read the TOS to some degree. They got their account restored and that was the end of it. Repeat offenders at that point were willfully causing problems, so we just left them blocked.
Obviously this only works if a human can understand your TOS. Another interesting line of questioning might be "at what complexity level is your TOS useful in shaping behavior and where does it just become a legal shield."