I've noticed some sellers using pictures that have been googled online from othr sources and claim them as the actual pictures of the items they are selling.

I personally feel that this is wrong and misleading to the buyers, can and should the thread be reported? Or there is other thing which should be done?

examples ?

Like, I'm selling an mp3 player that looks like ipod shuffle (but it is not).
Yet, I googled "iPod Shuffle" and post one of the pictures I found in the selling thread and tell the potential buyer that it is the actual picture of what I'm selling.

Clear?

In the example you've given, report the thread and we will take action.

He's still using the pictures to sell his fake shuffle, and added one more somemore. : )
Report ID: 9040

we only received one complaint regarding the misuse of ipod shuffle pictures. However, we checked with the seller and he assures that the pictures are of the actual product he is selling. We did request he put up additional pictures to proof that he indeed has those products in his hands.

Okay, he is stated clearly that he's selling an imitation of shuffle, (not Apple). Yet, the pictures are taken from http://www.ilounge.com/index.php/gallery/category/C72, featuring real iPod Shuffle.

So the possibilities are:
1. He is selling real shuffle at RM99.
2. He is using original Apple iPod shuffle to sell his imitation shuffle.

I just don't want the buyer to be mislead as I can see he has collected quite a few orders.

I did see he posted the picture of what he is really selling (look significantly diff from original) after the thread was reported.
However, he has deleted it and now continue to use the original iPod shuffle pictures.