This seems like complete discrimination. They shouldn't be able to freeze your account for having any references to "gay X" any more than they should be able to freeze your account if you were advertising "african american X".
I don't think they realize just how noxious this is to small companies. Pay pal is convenient but they are Earning a recommendation for unreliability large this kind od thing is enough to put a start up in serious danger. I hope star ups are not forced to play it squeaky clean and forced to discriminate in order to avoid loss of liquidity.
It sounds like it takes no more than a bad word or rumor of some outspoken group to get cut off. By bad word I mean gay black muslim independent.
I feel sorry for our non white non catholic friends. There seems to be a growing movement in the US to fragment our nation and KUt the others off from income and protection of law.
Is it related to orientation or do just the words "phone sex" trigger something? I have no idea how PayPal works internally.