Ben Edelma in his analysis 'False and Deceptive Pay-Per-Click Ads', writes about specific ads on Google.com. These ads seems to be violating Google's editorial guidelines and may be also US laws regarding "free" services being offered.
According to Edelman review these is a long list of such ads use the words "free" or make other claims that are said to be false. He looks at "charging for software that's actually free" here, then he looks at "the "completely free" ringtones that aren't" here, and then reviews some "ads impersonating famous and well-known sites" here. To conclude his analysis, Edelman reviewing the law, ethics, and incentives Google is faced with specific to these ads. He views Google and the search companies as the ones that really profit from such ads and suggests that Google "expand the policy to prevent these scams."