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I presented all of this to Google 3 times. My rep says, he cannot discuss other people's accounts. I have been told if no action is taken then it is not in violation of the TOS.
Do I just need to be a bigger advertiser to do this? My rep says it is not doable for me.
It wouldn't surprise me if smart entrepreneurs pay people a small amount of money to use their name for opening an Adwords account. If you manage to control a handful of accounts, you could control specific keywords, and thus make a lot of money...
Double serving is definitely against the TOS, and might get your adwords accounts by google.
In your case how can you tell they are the same person? Is is the same affiliate id, or is it that both urls were registered by the same person?
The grey area I suppose would be where the merchant registers 2 domains, one is promoted by the affiliate (say through clickbank) and the other is promoted exclusively by the merchant themselves. In that case no-one is actually double serving, the merchant and affiliate really are separate entities, even though the same product is being promoted. It goes against the spirit of the TOS, not sure if it actually breaks them. Maybe thats why google havent closed them down?