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The practice is a violation of Google Webmaster Guidelines
Google has reiterated to webmasters that they should avoid putting spammy links in their widgets. It classes links as spammy if they are stuffed with keywords, or if they contain low quality or hidden links. When other websites use these widgets, they are involuntarily posting links to the widget publisher's website, thereby artificially inflating this website's PageRank. This is a violation of Google Webmaster Guidelines. Webmasters who have included spammy links in their widgets are advised to either remove the links from the widget or add a rel=“nofollow” attribute so that the links do not pass on PageRank. They should then submit a reconsideration request to Google via the Search Console.
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