This is incorrect. The CEO of PayPal David Marcus has already denied these claims:

    To clarify: we have no policies against using PayPal to sell Bitcoin mining rigs.
    We don't support any currency txn whether fiat or BTC for a host of regulatory
    issues. But we treat BTC and any FX txn the same way. We're believers in
    BTC though.

There was a communication error in January but it was retracted within hours: http://i.imgur.com/GMC0fsd.png

https://twitter.com/davidmarcus/status/422632561882316800

https://twitter.com/davidmarcus/status/422632849670299648

So at the very least mining rigs are okay to sell.