It doesn't protect you.
You wire money to an account of their choosing, which could be an account anywhere in the world, and so you have no protection whatsoever: under which countries law would you appeal?
Furthermore, it states it is not refundable, which looks to me like a bit of a go at protecting them legally when they have no intention of returning money to you. In fact the "Escrow" details looked like they are written as an after thought to placate the unwise.
Think about it, if a used car salesman said he wanted XX pounds before he showed you a car, you would tell him to eff-off. There's no difference here.