A gay sex Web site has filed a lawsuit against PayPal, an intermediary for money transactions on the Net, after the financial giant dropped the adult site -- even though it only used PayPal to process donations for Hurricane Katrina victims.

What rankled Paypal is that CFS.com, which stands for CruisingforSex, has chat rooms, personals and listings of "cruising spots" for men to hook up with other men. It also contains numerous photos of nude men and has advertisers that sell gay porn and sex toys. For PayPal, the adult site's content violated its policy against "the purchase or sale of, or receipt of donations for, any obscene or sexually oriented goods or services."

"PayPal does not permit our services to be used on adult Web sites, and when the PayPal buttons were on this Web site, they were on pages that had adult services," Sara Bettencourt, a company spokeswoman, told the San Jose Mercury News.

However, Keith Griffith, founder of New Orleans-based CFS, said he was using PayPal only to collect donations for two employees who were victims of Hurricane Katrina, not to sell porn or sex toys.

"We are not trying to get them to change their terms of use or make an exception because of the hurricane," Griffith told PlanetOut Network. "We just went them to enforce their own policy. The only thing we are not allowed to do is use them to sell obscene merchandise. Last time I checked, helping someone pay the mortgage or buy groceries was not obscene."

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