Not all ads on adSense are reviewed. Or, if they are, the reviewers are doing a poor job. Locally, and on mobile devices, I get adSense ads like: "Your device has a virus. Click here to download our anti-virus software for 4.99$." Then the page shows the "404 broken robot"-graphic (it is an ad on adSense network, which spoofs Google, and scares you into downloading a paid, probably worthless, virus-scanner).
I've reported numerous ads to Google over the years: Some competitors who were not playing by the rules, but also redirects to porn websites and the (locally) infamous: Your Whatsapp has expired! Enter your phone number, so we can mine that, and charge you weekly for a fake app.
> I suppose they might block sites that use DFP to serve ads from other networks they can't vet and don't go through good review and were detected to contain bad Ads.
Likely, but this seems weird (fix/penalize DFP partner networks first, don't penalize your users for using your own product). Also from a competitor sense: I am all for protection of users (use an adblocker!), but it does not feel right that a company with the resources of Google, finally manages to rid their own network of these malicious ads (let's say for sake of argument they have), then immediately puts the ban-hammer on their less resourceful competitor networks. Perhaps that is a side-effect of owning both analytics, the ad networks, and the browser people use to view those ads.