The statement is clearly legal but I assume you mean "does it comply with PayPal's terms and conditions?" I couldn't find anything in their terms and conditions that would make this a violation of their policies. For dumbheads like me who are Premier members (long story) the fees on small purchases are quite a burden so it is much better to receive a single larger payment. I don't think PayPal is opposed to this - the "Packing Slip" they create is capable listing of multiple items from separate auctions if they were listed at the time of payment.

Chas