I would never give such information when ordering online. I have never been asked to! A quick Google search suggests this often happens when you are dealing with a company that has had many complaints against them lodged with their payment processor. Although that is not necessarily their fault, because maybe it is the case that many people try to order and then claim that they never in fact ordered because they are trying to get a free product!
And there is a big difference between legal and illegal, but between ethical and unethical, ha ha, it is more subjective. It is in the eye of the beholder. This site reminds me of something Charlie Brooker said: Never argue about anything online. Its very true.