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CPC_Andrew - 2:25 pm on Oct 25, 2011 (gmt 0)
At the sheer number of merchants getting away with it I doubt Google would be rash and start insta-banning merchants who are not compliant.
There is a good number of those merchants who have shipping that's too complicated to enter or they don't have the technical resources to enter it.
It's a competitive advantage that some merchants are taking advantage of and it's something you should be aware of.