Their listings are still live because if they have broken a selling regulation they have slipped the net. With more than 7 billion listings on at any one time eBay cannot check each and every one so some invariably slip the net and become listed.
When they are spotted and reported, like yours was, if a selling reg has been broken they too, will be removed.
Do not relist that item on eBay as you would face serious selling restrictions.
@2016fantasia