Looks like rumors are spreading about from the land down under about WoW and the legality of the sales. Blizzard has issued the following statement to ease fears and clarify things.

Blizzard Entertainment and its affiliates work very closely with the Interactive Entertainment Association of Australia to ensure that we are in full compliance with Australian law as it relates to the distribution and operation of our games, including World of Warcraft. We'd like to reassure all of our players that World of Warcraft is currently, and has always been, distributed and operated legally in Australia.