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Thanks for your response, Will. It's small business (maybe 10 or 12 employees) at a single location. While they don't really impact me directly, it's particularly bothersome because they are in the advertising and marketing business. We tell clients not to do these things, but all around there are agencies that succeed using these tactics.

A competitor has links to every state in the U.S., every county in our state and nearby states, and every city in those nearby states. All with corresponding link text and titles that lead to pages with thin, duplicate content. They consistently rank high in the SERPS and have for years. What gives--I mean, isn't this something that should get you penalized?