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Other than that it is a free market and no price guides are being endorsed, that doesn't mean sharks or trolls will be tolerated.
Reporting users who have trades like that just gets responded with
"We do not tell our users what they have to buy or sell their items for. If this person's prices aren't what you are willing to pay or sell your items for, try using our SEARCH feature while will help you find a better price. Thank you for the report though."
-- But that's not what this thread is about. So let's leave it at that and get on to the question, eh?
To prevent your reports from being overlooked and to make moderator's lives easier, provide proof with completed trades and/or market links that prove that it does indeed sell for $7 otherwise one might assume that you're just one of the many traders who misuse the reporting system.