It would be even worse if they did this by choice and not because they are forced by regulation. Either way it is "know your customer" and it a bad practice to run such a scheme. It can only hurt the user.

You are suggesting that users should wilfuly violate the terms of service just to avoid having their data stored with a corporation. At this point we are back to clown internet where you have to jump through hoops to avoid geting screwed over.

We both know that many normies will fill in the info without thinking, so to me it is ridiculous that someone would think it is okay just because they can lie on the form.

That is why I think they should be called out.