What site reputation abuse means
The rule does not ban third-party content. It bans one specific purpose: publishing it on someone else's domain because that domain already ranks. The difference between a legitimate section and a violation is not who writes the text, but why that text lives in that house.
Google publishes examples in both directions. It counts as a violation when an educational site hosts sponsored payday loan reviews written by a third party, when a medical portal carries a third-party advertising page about "best casinos", or when a news outlet hosts coupons supplied by a white-label service. So does an established site branching into a new topic area mainly with freelance writers.
Not violations: wire service copy and press releases on sites dedicated to them, news syndication between outlets, forums and other user-generated content, opinion columns, third-party content shared directly with readers for promotional purposes, pages with properly marked affiliate links, and coupons obtained directly from the merchant.
The colloquial name "parasite SEO" describes the same phenomenon seen from the outside. Google does not use that term in its documentation.