My understanding is that the only person who can report stolen photos, is the seller from whom they were stolen.
I've just contacted the seller of the 05 City. Hopefully, she will be able to put a stop to this.
Watermarking is not fool-proof, but it does seem to deter this kind of thing to some degree.
Not any more.. there is now an option in reporting to report photos stolen from another listing or website! Just post the ebay listing in description when reporting. Report as COPY OF YOUR LISTING, but then gives the option of YOUR listing or photos from other website or ebay user.
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