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That's right! The seller's bids are Shill Bidding, which is not allowed under the eBay User Agreement, by eBay marketplace policies, and violates laws on misrepresentation or fraud.
Tip: Even if you believe Shill Bidding is not illegal under the laws of other countries or in other marketplaces, it's always against eBay policy and may also breach various consumer protection and criminal laws in Australia and can result in severe penalties.
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