As far as I know, Ebay won't do a thing to the seller. As close as I was able to get to reporting something like that is when I bough $30 worth of AA batteries advertised as 2600miliamps, (the number gauges how long they'll go between charges) and I got 1400miliamp batteries.
It was a sweet little scam because there was no mention of what miliamps they were on the retail pkg, very unusual. But when I looked up the part number on the back, googled it and verified my findings with Rayovac, I found I got much less than what I ordered.
So, of course I made the seller aware (of what he already knew) of it and made Ebay very aware of the problem in the dispute. I did end up with a refund and didn't have to return but the seller was still doing it months later.
I could have returned the batteries but as well as the seller pulling the ol' put off until too late to file pizzing me off, I figured losing everything on the sale might wake him up, it didn't that I know of.
Ebay is simply not going to spend any time investigating something like this because it doesn't hurt them, they still make their money and Ebay only implements or enforces policy that make them money.
See, if there were a place to report this type thing that would actually amount to proper action, we could ask a Community Guide where to report it but the problem there is, just the fact we'd have to ask at all, and can't find a serious report link, means either there is none or Ebay doesn't want us to find it. With that in mind, it would be useless to ask.
In short, fraud is fine here as long as it has no substantial affect on Ebay's bottom line.