If it is illegal to sell used underwear then i guess all the people selling them in naughty bids are breakin the law....

http://www.metroactive.com/papers/me...ties-0013.html

http://www.naughtybids.com/bid.aspx?auctionid=3193423

The only difference seems to be that they are individuals...

according to Naughty bids they require that the used underwear is washed first. or at least they make the sellers state that.