While the SEO and webmaster community wait with baited breath for Google to launch its promised Disavow Links feature in Google Webmaster Tools, Bing went ahead and launched a disavow tool of its own.
Duane Forrester, head of Bing Webmaster Tools cautions:
You can easily export the list as you build it over time.
These signals help us understand when you find links pointing to your content that you want to distance yourself from for any reason. You should not expect a dramatic change in your rankings as a result of using this tool, but the information shared does help Bing understand more clearly your intent around links pointing to your site.
In other words, what I take this to mean is you are still better off trying to remove bad links, but this is a step in the right direction.
Some have speculated that Bing rushed to get this out because their search engine algorithm does in fact punish sites for bad links. I personally am not sure about this. Many webmasters have come to me who were hammered by Panda. When I investigate their site, I often find outstanding rankings in Bing. That could mean that Bing is not punishing sites for bad links or it could mean that Bing has far different guidelines than Google for what it considers to be a bad link. Nobody is certain.