I buy and sell collectible toys fairly often. Several times when buying a toy I've been asked to send payment as a gift (instead of goods which it should be) on Paypal. I've been on this comm long enough to know that A; it's against Paypal's ToS to ask your buyer to do that and that the gift function is not for goods, and B; if something goes wrong I can't dispute it.
When asked to send as a gift I send the payment as goods the fees on top so the seller gets the exact amount and so far nobody has been upset and in fact have been very polite about it.
When asked, do I tell the seller that it's against Paypal's ToS to ask that goods be sent as a gift? Tone isn't my forte so if yes, what would I say without coming across as "lecture-y" for the lack of better words?