Products that are prohibited by U.S. law or constitutes as copyright infringement will not be allowed on PhiMart. The legality of some items vary with location; local, state, national and international laws should be reviewed before buying or selling. PhiMart primarily specializes in consumer electronics, but is not limited to such products. In addition to products prohibited by law, the following items may not be sold:

• Adult material
• Alcohol
• Artifacts protected under federal law, i.e. cave formations and grave-related items
• Biological material, including animals, parts, remains and waste
• Catalytic Converters and Test Pipes
• Cell Phone Plans. Only authorized resellers may sell cell phone plans, and coverage and restrictions must be specified in the item description. If the buyer is rejected for service plan, the seller must issue a refund with 10 days of payment.
• Charity or Fundraising Listings
• Contracts and services that cannot be transferred
• Copyrighted items, including art, promotional material, reproduced material, and replicas of trademarked items
• Credit Cards
• Drugs & Drug Paraphernalia, including prescriptions.
• Government controlled or issued products, including IDs and licenses, currency, postage, postage meters, documents, and uniforms.
• Gift cards
• Illegal items, including lottery tickets, stocks and securities, stolen items, hazardous material, embargoed goods, or easily concealed surveillance equipment.
• Mailing Lists and Personal Information
• Medical Devices
• Mystery auctions. All products must be clearly labeled and accurately represented in the listing.
• Multi-level Marketing, Pyramid Schemes and Matrix Programs
• Offensive items, including hateful material and items that encourage illegal activities, including lock-picking devices, cable descramblers, and how-to texts.
• Perishables, including food and drink (see Alcohol)
• Plants and pesticides, including seeds and tobacco
• Property with removed serial numbers
• Real estate
• Recalled items
• Slot Machines
• Teacher's Edition textbooks
• Transportation vehicles, including automobiles, motorcycles, and boats, etc.
• Used cosmetics and clothing. Only clothing that have been thoroughly cleaned according to manufacturer's instructions may be sold. Used underwear is not permitted under any circumstances.
• Weapons, including firearms, ammunition, and knives

• Authenticity, Replicas & Counterfeits: If the seller cannot verify the authenticity of an item, that item may not be sold. Unauthorized copies and counterfeit items may not be listed on PhiMart. A product bearing the name or logo of a company without that company’s endorsement is considered as copyright infringement.
• Appropriate Content: The content must be appropriate for all ages. Pornographic materials may not be auctioned, used, or linked. Profanity is prohibited.
• Bonuses: When offering a bonus, the exact amount at which the bonus will be applied must be specified. In a multiple items auction, the bonus should be applied at the same rate to all buyers.
• Categories: Seller must list their items in appropriate categories.
• Descriptions: Misrepresentation of products are prohibited. All relevant information, restrictions and limitations must be clearly outlined. Inappropriate keywords and brand names may not be included. Mystery auctions are prohibited. All products must be clearly and accurately represented.
• Empty Listings: All listings must offer an item or service for sale. Seller may not create a listing with the sole purpose of promotion or advertisement.
• Fee Avoidance: Seller may not take action to avoid PhiMart fees. Such actions include offering an order catalogue, excessive handling, shipping, packaging or insurance fees, offering the opportunity to purchase the item outside of PhiMart, or linking to sites providing similar service.
• Insurance: When requiring buyers to purchase insurance, sellers must use a third party licensed insurance company, and must only charge buyer the actual insurance fee.
• Keywords: Seller may not use keywords that are unrelated to the item for sale, or misrepresent the item.
• Listing Multiple Items: When making multiple separate listings for identical items, only one listing may be made per day.
• Payment: Sellers must specify permitted forms of payment, and may not charge additional fees for the acceptance of checks, money orders, credit cards, or electronic transfers.
• Personal Information: The personal information of the buyers should be kept confidential, and the seller must not sell or give out personal information to marketing agencies.
• Reserve Price: When listing an item with a reserve price, the seller cannot compel a buyer to complete the purchase if the reserve price has not been met. Sellers may not state the reserve price when the reserve price feature is not being used. Seller may not cancel bids and listings to avoid reserve fees.
• Rewards: If you become a Business Seller, you must offer rewards to your shoppers on PhiMart products. Rewards are given in the form of olives, which may be redeemed for eCash. (More about olives.) Olives may be set as a fixed amount or as a percentage of the final sale price. The minimum percentage is .5% and the maximum percentage is 5%.
• Shipment: Sellers must charge reasonable fees for shipping, handling, packaging, and insurance. Excessive charges will be considered as fee avoidance. Sellers must accurately represent shipping location, and ship promptly after receiving payment.
• Shill Bidding: Artificially inflating the price through false bids is forbidden. The seller, and friends and family of the seller, may not bid on the item.
• Tax: Only applicable federal, state, and local taxes may be charged.
• Transactions: The seller must honor the transactions made through PhiMart, including honoring terms of payment, shipment of items, and issue refunds for undelivered or returned items.
• Warranties: When offering a warranty on an item, the full text of warranty details must be provided by the seller. The item description must contain one of three things: the full text, a link directing bidders to the full text, or an explanation of how bidders may receive the full text. Sellers may not charge users for the mailing or viewing of the warranty.

The intellectual property of others must be respected at all times. If a PhiMart user is found infringing upon another's intellectual property, the listing will be removed and the user account may be prohibited from certain privileges, or suspended altogether. To avoid infringing upon intellectual rights, make sure that you follow these guidelines:

1. Always use your own words for your product listings. Do not copy manufacturer's product descriptions. Technical speculations of the product are generally okay to use.

2. Take your own pictures of the product. Pictures belonging to the manufacturers or another user may not be used. The manufacturer's logo from their website also may not be used in your listing.

3. Do not use brand names in association with a different product. If the product that you are selling is not produced by the actual manufacturer, the manufacturer's name may not be used in the listing title. In the item descriptions, you may make comparisons between the performance and functionality of your product to a brand name, but not its appearance.

4. All counterfeit goods and unauthorized reproductions are prohibited.

5. Make sure that you are authorized to resell the product. For example, many software licenses prohibit the selling of the software after installation. In order to resell the software, you will also have to sell the hardware that it has been installed on. Carefully review the software licensing policy.