If someone tells me where they're baiting (on a pressured water) I always tell them straight that I'll fish that swim if I see feeding carp there. Don't get me wrong, I'll not jump on their spot for no reason, I'd rather fish elsewhere, but I WILL fish for whatever I can see. Hence if I see them in that swim, I'll be after them.
It's not fair to give guys that moral dilemma so I think the fairest and most honest way to deal with it is tell them you couldn't care less who's baiting where.
On an un-pressured water it'd be a different story. I'd like to think I'd have been baiting myself. And no-one would know where, believe me!!!!