Ebay-password Recovery Disc for Mac OSX Lion

Dear Apple Support Communities: recently on ebay, I have seen several sellers selling a Password Recovery Disc for Mac OSX Lion. This Password Recovery disc claims to be able to reset Lion's password of any user account WITHOUT knowing the old password! Is this possible? This is scary! If so, is there a way to prevent someone from using this disc to reset someone's password without them knowing it? If you want to see for yourself: go to ebay and enter item #  251037274344 for example. There are other sellers also. Thanks.

Anyone can do this from the terminal without even a CD, so no it's not very scary.
If they advertised that they could get into file vault, or the keychain, then that would be another story altogether.

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