Uggh.. this is what Google is very serious about preventing. This is so bad i would really want to see the URL where it occurs or other independent reports before panicking. No insult Jason, but this is something where I really need corrobarating evidence, though i realise you cant publish the URL here.
That kind of thing happens. Years ago, somebody in the newspaper business told about a similar indicent. At that paper the layout of the news text in the "news hole" was done by a different group than those who put together the display adds. (this was in the analog days when film was used). At the last minute the two films would come together, and were reviewed only for specks on the film and other problems. Sometimes an ad and a story would be together in ways that could be humorous or offensive (usually both!). It makes for good short fillers in Readers' Digest.
I guess the only thing we can do is have a good laugh, unless we are directly involved. Then we can just be offended while everybody else has a good laugh.