"Google AdWords has a policy" ... but the problem is policies which are loosely enforced may as well not exist.

Google was quick to point out their policies to the FTC on the scammy government grant ads, and yet months later Google was running the very same scam ads http://www.seobook.com/buying-links-vs-buying-rankings

some more background on Google's ads http://www.benedelman.org/ppc-scams/ http://www.seobook.com/how-make-easy-money-google