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I don't see what the issue is. Don't try to scam people on ebay, and you won't have anything to worry about.
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The issue is
Anyone can say that they are a cop and get your info off of eBay. I could send them a fax saying I am Officer Friendly and give them a bogus badge # and they will send me all of your vital statistics. They should at lease make an attemt at verifying if an acctual officer is loking for the info or if it is just some loony.
The other issue is that if I am going to buy something I dont want the seller keeping track of it and handing a list of all of my purchaseing info over to the cops. Also , with them buying pay pal they are going to be keeping tabs on what you buy even if it isnt on eBay. How would you feel if the cops showed up at your house over someone you sent money too with pay pal?