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What does the Google Penguin update change? What should I do or not do now that this update is in effect.
I could take a lot of time listing it all out but instead I'll link you to a great post I was shown: Google Penguin
That should cover everything you need to know.
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It's meant to demote websites that have been using blackhat linkbuilding techniques, however many white hat websites have also been demoted.
To be frank with the issue of this Penguin update by Google, I have yet to see an official declaration about it, what the changes are and how those changes would affect the sites. But until now what I see are questions like this and answers that are either speculations or simply concoctions of the creative minds. Maybe you have to check on Google itself and see what the update is all about and you post it here for the clarification.