I can't say I completely understand the scenario, but if you're talking about a user filling out a form, then submitting that form, then no. That would be expected behavior.
Data may be encoded in any number of encodings depending on need. Encoded data isn't always human readable; especially so during secure transmission. It's not so much the inability for a human to read the encoded data as it is the data being consisting of only what is necessary to perform the action expected by the user; those expectations, of course, set via whichever means the user is interacting with the software.
Please correct me if I've misunderstood.