Ok, i've seen that Google is starting to take action against companies
which are using tricks to artifically inflate their search results.

What spefically is Google referring to here, and how does one go about
reporting a company who looks like they are doing this in violation of
Google's guidelines?

The best example of what not to do is:

http://www.thequattroworkshop.co.uk

First of all, this guy only works on Audi quattros. But he's got every
other car made on his home page, just to tell you he doesn't work on
them. Kinda pisses people off to get hits like this that slap them in
the face.

Then go to the bottom of the page and drag your mouse pointer across
the page. See the hidden text light up?

Google doesn't like that either. Then try and get into the site, and
you're three levels down before you hit any meat. Another thing Google
doesn't like.

They publish their guidelines. Following them is a good idea.

phil@isham-research.co.uk wrote:
I wonder where in hell this algorithm of Google is showing any work
done. The hidden text at the bottom is not even desguised by a CSS
style, it is straight there in the source code of the page.

I read somewhere that reporting spam via Google's forms has no real
effect. Has any site reported ever been penalised at all? Personally,
the link above is of no interest to me to report it. On the other hand,
they seem to be a small business that might have fallen prey to some
bad designer or SEO practitioner. I would write to them directly before
going to Google, but this is me, ok? If they were competing with me, it
would be the Tower of London for them but as they are not I just look
and laugh.

This also shows what kind of SEO work certain practitioners produce
when they don't have a clue about web standards, usability and
accessibility. It's like 1995 again.

Cheers,

Luis