Ebay fees, paypal fees, it is all a racket... My opinion is that Ebay is now taking advantage of how entrenched they are. This is exactly the type of thing that made me stop trying to sell anything on Ebay. Once Paypal and Ebay were like one company, this type of thing got going and it was probably the plan from the start. I predict that this is not the last step that is taken to take advantage of sellers and buyers. The more people depend on Ebay, the easier it will be for them to charge extra fees, that largely go unnoticed unless someone points them out... Like the OP said, it should be illegal, but who is going to stop them and make them change back to fair practices?