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Google and Paid Links

It appears that Google is going to take this FTC statement to heart in the very near future.

“The petition to us did raise a question about compliance with the FTC act,” said Mary K. Engle, FTC associate director for advertising practices. “We wanted to make clear . . . if you’re being paid, you should disclose that.”

Matt Cutts has said, "If you want to sell a link, you should at least provide machine-readable disclosure for paid links by making your link in a way that doesn’t affect search engines. There’s a ton of ways to do that. For example, you could make a paid link go through a redirect where the redirect url is robot’ed out using robots.txt. You could also use the rel=nofollow attribute. I’ve said as much many times before, but I wanted to give a heads-up because Google is going to be looking at paid links more closely in the future."

"The other best practice I’d advise is to provide human readable disclosure that a link/review/article is paid. You could put a badge on your site to disclose that some links, posts, or reviews are paid, but including the disclosure on a per-post level would better. Even something as simple as “This is a paid review” fulfills the human-readable aspect of disclosing a paid article. Google’s quality guidelines are more concerned with the machine-readable aspect of disclosing paid links/posts, but the Federal Trade Commission has said that human-readable disclosure is important too."

"To make sure that you’re in good shape, go with both human-readable disclosure and machine-readable disclosure, using any of the methods I mentioned above."

With that being said and assuming that what Matt says is Google law, what is a paid link exactly? To me it appears that any link that goes to any site that may pay you would qualify as a paid link.

At some point, Google is going to have a special form to report these paid links. Right now, it appears that the only thinks you can do is what was suggested above and follow the directions on Matt's Blog, Here.