They are spreading. After spending just a few hours browsing on the Internet, I easily found dozens of interesting and disturbing cheat sites offering term papers of all kinds. I counted 40 links at one site alone. Papers offered ranged from high school to college to graduate school level. Some include links to pornography sites as well.
Most sites have a disclaimer.
Most assume or argue they are protected by the First Amendment. Some warn students not to turn in the papers from their sites. The School Sucks site warns students that plagiarizing the site's papers is foolish because they're so well known that teachers, professors, and the media visit the site regularly. It also quotes and acknowledges the plagiarism section in Diana Hacker's A Writer's Reference . Sites vary greatly offering from a handful of papers to thousands.