Using deceptive adwords

What is Google’s policy on using misleading keywords? A colleague of
mine was asking about this, in the following context:
Bob Smith has an online business selling blog consulting, called Bob’s
Blog Booster. John Doe also does blog consulting (or even perhaps blog
designing or something else in a complementary field). John Doe buys
pay-per-click ads using the keyword "Bob Smith" and "Bob’s Blog
Booster" that takes clickers-through to John Doe’s site, presumably to
avail himself of some of Bob’s tasty Google rankings and reputation.
Does this violate TOS or anything, or is it just gray-area hardball? I
couldn’t find anything on first read-through of the TOS, but my
legalese is a bit rusty.

Original post by sonipitts