Read this fascinating account in this lengthy NY Times article about JC Penny, BMW, and others being penalized. -
http://www.nytimes.com/2011/02/13/bu...agewanted=1&hp
Penney's astoundingly strong search-term performance in recent months. What he found suggests that the digital age's most mundane act, the Google search, often represents layer upon layer of intrigue. And the intrigue starts in the sprawling, subterranean world of "black hat" optimization, the dark art of raising the profile of a Web site with methods that Google considers tantamount to cheating.
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and from Matt Cutts
"Do I wish our system had detected things sooner? I do," he said. "But given the one billion queries that Google handles each day, I think we do an amazing job."
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It's fascinating to me because so many major sellers were caught.
Also that Google chose to only use "corrective action" on JC Penney, as apposed to a penalty, such as removing them from search entirely. Well, it pays to be a big name that pays a lot for advertising.