Grant Shapps is the Conservative Member of Parliament for Welwyn Hatfield and the new co-chair of the UK Conservative Party. He's also co-owner (with his wife) of a spam factory called HowToCorp, which markets a product called TrafficPaymaster, a program that scrapes blogs/RSS/search results, runs the text through a thesaurus (seemingly to avoid copyright infringement charges) and pastebombs the resulting word-salad onto pages slathered in display ads, in the hopes of tricking search engines into returning them as results for highly ranked queries and racking up accidental click money.
Danny Sullivan explains the workings of "spinner" software like TrafficPaymaster, and documents the tricks that the Shappses' company uses to market its wares, including a web of aliases and elaborate, misleading accounts of how Google views products like TrafficPaymaster and its useless output (here's a sample of the material the Shappses' program outputs: "A free of charge golf swing lesson appears a very little as well superior to be accurate." Here's another: "So the to begin with phase to getting a quality golfer is to order some clubs that match you.")
It's high-profile, of course, because it's fairly hard to believe that the new co-chair of the UK's ruling political party (mostly ruling, the Conservatives share power with the much smaller Liberal Democrat party) is behind software that "plagiarizes" content to spam Google.
Technically, I'm not sure if the spinning is plagiarism, but both UK papers I've mentioned are running with that angle. They're also big on this quote posted on Warrior Forum that appears to be from the aforementioned Sebastian Fox:
Google may or may not like a particular approach, but the real question is whether there are any signs about how a page has been created. If the answer is no, well then it doesn't much matter what Google officially thinks.
The Guardian cites that as if the quote is dismissive of "Google's attempts to police the internet," whereas The Telegraph suggests that it means "Google would be unable to stop the copying of websites."
The reality is that the claim isn't some type of gauntlet being thrown down against Google. It's simply meant to reassure a prospective buyer of what I covered above, that Google probably can't tell that the page was created using automation, so even if Google has official rules against that (it does), TPM users probably won't get caught.
Danny finishes: "The Conservatives came under accusations that they were too close to Google earlier this year. Having the party run by someone who created, and still seems associated with, a business designed to help people spam Google probably will serve as a nice balance to that."