Proxies are legally used in casual playtesting to test decks without spending the actual pokemon card price on expensive meta cards. A proxy has a pokemon card price of zero. Illegally, some malicious players print high-quality proxies and attempt to trade them to new or younger players for real cards with an actual pokemon card price. This is theft by deception. Always inspect cards closely during trades to ensure you are getting real cards with a legal pokemon card price, not proxies.
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