In the Merchant Center Troubleshooting group Celebird said this in response to the question Google Product Ads Disapproved but Product Search Approved:
for a u.s. feed the two policies have now been combined —
if product-ads is disapproved the items will not be listed;
if product-search is disapproved the items will not be listed.
Although I have not seen this confirmed in any Google communication, it sure looks like this is what is happening. The big problem is that we do not know why our Product Ads are being disapproved. It is hard to fix a problem without an error report. Here is my previous post on this problem, Google Shopping Fail? Webmasters Report – CPC Strategy .