So term papers are banned from adwords.. but ponzi schemes allowed?

Just wrote an obnoxiously long post about Google and Yahoo allowing HYIP ponzi schemes to advertise on their site. I got the idea from the post about Google banning term papers/essay writing sites from advertising.

A while ago someone sent me a very long, detailed email looking for consulting for their website. After looking at their site I noticed much of it appeared to be about these HYIPs, so I declined. What really struck me was that the site made a very significant amount of money (which I tend to believe.)

Anyways, perhaps some of you would be interested. To Microsoft's credit, these HYIP sites appear to be banned.

Since ponzi schemes are against the law (at least here in the U.S.) I suspect they aren't really allowed as much as just being harder for Google to detect. I bet if complaints were filed about these types of sites advertising on AdWords, they would be banned.

Without knowing I would guess that the papers ban came from pressure from the main colleges?

Ok, addressing "harder to detect"..

I would understand if a couple of ads slipped through and they showed up for "high interest investment" or something like that. But, all these ads are showing up for the exact term -- HYIP. ****, I just uploaded some new ads to adwords today, one of them contained the word "reaction" and it said it couldn't post it for trademark issues!

As for what these hyip advertisers are doing right now there is no sneakiness at all involved. Its obvious and blatent. For me, I just saw it and made the post really wondering why this is allowed. This isn't an issue that is really important to me or keeping me up at night. Someone already commented that they've known about this, complained to Google on multiple occasions and nothings happened. So, as of right now my conclusion is that neither Google or Yahoo care.

Well considering the word reaction is a dictionary word I can't see how there could be any legitimate trademark claims to it. In regards to the HYIP thing, it would appear that Google is ignoring it. :(

Reaction is a trademark for a brand of Kenneth Cole shoes. I think its a valid demonstration of the absurdity involved it they blacklist a common word that might possible have trademark issues when a word that specifically is a fraudulant investment scheme appears to be allowed (and if it is blacklisted/red flagged, and they are letting these sites go through thats even worse.)