For some time now, I have been fighting this battle.
An affiliate ad-network has been bidding on our brand keywords. The problem is not that he is bidding, the issue is the text ad is a copy paste of our Google adwords ad and has our domain name as its display url but when clicked it redirects a user to a third party site.
Now how is that possible? As per Google's T&C the display url and destination URLs need to be same. Google's sales team is not able to resolve it and our brand / acquisition is suffering.
Any techie Googler reading this post please help me.
I battled this issue and you have to literally email Google daily forever. Also, contact the affiliate network and refuse to cut any checks until they cut off this person. It can get resolved but it takes persistence.
When you say redirect, I'm assuming you mean that it's ultimately redirecting to your company's page. That's not a problem in and of itself. Many legitimate agencies set their URLs with redirects for tracking purposes so Google won't be much help there.
I do hear you regarding the affiliate copying your ads and poaching your traffic though. It's completely frustrating and I've been there many times. Your best bet is to figure out who the affiliate is and either tell them to remove the ad (good luck with that) or remove them from the affiliate program (more likely). The latter will break the URL they're using and render a 404 error if a user clicks on their ad. You can then contact Google (calling is faster: 866.246.6453) and tell them the situation. They'll now listen to you since the ad goes to an error page which is against their editorial guidelines as it provides a poor user experience. In my experience, they will remove the ad within the same day that you request it being taken down.