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PayPal provides this information to sellers so they can process shipping goods, obviously no doubt this is a recurring issue with `Doxxers` as I have had a lot of people attempt to use this against me as well, however I am not sure if PayPal is obliged to secure this information when you purchase a good, on the other hand you can specify not too send this information.
I do not for a minute believe PayPal "allows" it. You can buy a gun but what you do with it is on you, right? Do you want PayPal ask people if they are going to use PayPal services to doxx people before signing up? And of course people are going to lie. lol
If you know who is doing it, report the accounts or websites.
Consumer fraud warning
We’re always looking for ways to help keep you even more secure. So stay on the lookout for some of these common scams:
Always use common sense when sending money. If something sounds too good to be true, it probably is. Only send money for yourself and not for others. Remember that if you don’t send the payment through your PayPal account, you’re not covered by PayPal Purchase Protection. Please let us know immediately if you believe someone is trying to scam or defraud you by contacting us.
So to contact PayPal:
Log on, click HELP on top menu, scroll down to click CONTACT US, and then scroll down to click CALL US or other contact options.
Call early, during business hours, west coast time to try to get a US rep.
Or contact via social media:
Facebook (US): https://www.facebook.com/paypal
Twitter (US): @AskPayPal
Report to the local PD and file ic3.gov report too.