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Can that paper crotch guard in bathing suits prevent disease from spreading?

You're on to something here: it can't. The paper just protects the garment from getting stained. It doesn't protect you from nasty infections or pubic lice.

So you must always wear your underwear when trying on a bathing suit-it's lumpy, yes, but necessary. And once you find your perfect suit, wash it in warm or even hot water before wearing it.