ColourOfSpring - 10:55 am on Apr 4, 2013 (gmt 0)
Yes, PR is not passed, but that does not mean that Google *ignores* paid links, it pays plenty of attention to them, from dropping the toolbar PR of the selling site and by not allowing it to pass PR (and dinging the buying site when caught).
OK, I'll try again. My original point when I said this:-
If Matt Cutts is saying that Google will simply ignore paid links
....I meant: Google is ignoring the linked-to site. They are not penalising the linked-to site.
I hope that's clearer, and I apologise for not being clearer.
If it is the case that Google are now ignoring the linked-to sites, then this is a new policy from Google, since they've penalsied plenty of sites that paid FOR links in the last 12 months. If you recollect, there's been a lot of evidence that links can hurt your site. IF paid links no longer "hurt" the linked-to site, then this is a big change.