I have ids registered in both the UK and Aus, I don't sell most of the time using the UK id but if and when I do the item location will reflect which country the item is in.

Of course if I used an old template and forgot to change the item location it would be a listing policy violation but it would in no way mean you were going to receive a fake item.

It is usually done to increase visibiity and/or to disguise the fact that a return may be more expensive so not worth disputing. For those reasons you should certainly trash the description star (mine included if I have made a mistake lol) even if everything else is OK.

In all my listings I show the item location as China. Then in the body of the listing I say that I design the items in Australia and they are manufactured in China and sent direct. I don't think I can be any clearer than this. However, I have received emails from people asking how long delivery from Australia would take.