Google is offering users a way to report paid links in an effort to provide searchers with better results, a move that has generated plenty of discussion.
Vanessa Fox writes on the Google Webmaster Central
"Links that are purchased are great for advertising and traffic purposes, but aren't useful for PageRank calculations. Buying or selling links to manipulate results and deceive search engines violates our guidelines." She goes on to explain that Google will review each report that they receive and use the feedback to improve their algorithm and search results. She also leaves the door open to taking possible action against individual sites.
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