Over the coming months we’re adding better controls for Local Inventory Ads to support more advanced use cases for targeting store products. To prepare for these changes, we are removing the existing ProductSalesChannel from AdWords API v201409 and will add new controls to a subsequent AdWords API release next year.

Starting October 15th, 2014, using ProductSalesChannel to select the Local channel settings (CriterionId - 201) will return the CriterionError.CANNOT_ADD_CRITERIA_TYPE error for all AdWords API versions.

For most Shopping campaigns, you don't need to add this criterion, and should simply omit it from your AdWords API request. We recommend that you use the AdWords interface to make any changes to your Local Inventory Ads campaigns.

- Ray Tsang, AdWords API Team