That's the whole point. "Collinear" means they are on the same line.
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Points are collinear if they lie on the same line.
Collinear
Points on the same line are collinear (co-linear) points.
The two phrases are equivalent: collinear means in the same line [segment].
Any two points lie on the same line, since a line can be drawn through any two points.Three points that lie on the same line are described as being "collinear" points.