We don't condone people intentionally masking their true location, as it's a form of fraud and can be used for illicit reasons.
The term fraud has very specific meaning and I'm going to assume you are misunderstanding that meaning. By transacting using Tor or a VPN to protect my privacy is not something that violates your terms of service (at least not my preliminary reading of it). Even if it did though, that is not the definitioin of fraud.
I think he meant that they might be able to use Tor to pretend that they're in another location.
