Because Paypal doesn't care about you, they just want an excuse to grab more money. If and when they'll caught they'll get a slap on the wrist and then stop... but in the mean time they'll pull in millions. File a complaint with your State's Attorney General's office, file a complaint with the BBB and the Office of Consumer Affairs. Also, contact your local State Rep's and let them know that Paypal is acting in violation of Oregon law.
Paypal will do whatever it wants until it's forced to comply. It only cares about money, nothing else. Until they are financially penalized for doing things like this they wont stop.
