Does Google Penalize Websites For Showing A Connection To Each Localization?

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In episode 517 of our weekly Hump Day Hangouts, one participant asked if Google penalizes websites for showing a connection to each localization.

The exact question was:

I'm working with a national medical service/product company. They have a main website that is being rebuilt from the ground up. They have a shopping cart on their website where they send customers when they are ready to purchase. They are locally in 30+ cities throughout the USA. They don't have a physical location for customers to visit in each location. Their salespeople are only going out to hospitals and doctors. They now want to capture B2C customers through search in each location, which is a huge amount of business that's not being captured. We are fully building and branding a local site and ranking for each location. Here's where I'm not sure what is the best direction and repercussions... Since all customers are purchasing via the website, do I have a shopping cart on each website? That can be done but it also seems to be a bad option from a management standpoint and our client isn't excited about that either. The other option would be to redirect the customer to a single website when they click on ""purchase"" from each localized website. That makes the most sense and seems to be the best option. But what does that do to all the localized websites pointing back to the same website where the shopping cart resides? Will Google spank all the websites for showing a connection to each localization?

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