u/agoodusernameno1has explains why Robinhood is not doing anything illegal by freezing GME trades

They're not wrong to first look to the terms of service to see if RH is doing something obviously contrary to any obligations they have to their users, but I don't think the analysis stops at whether or not their terms of service permit them to do something shitty and unfair.

Consumer protection laws often prevent companies from engaging in "unfair" business practices, and it sounds pretty unfair to stop trading a stock because some other company asked you to. Not like RH would've stopped trading a stock if I'd asked them to. Combine that with other brokerages simultaneously miraculously coordinating their freeze? Color me not convinced that this is legal simply because RH didn't violate its nearly nonexistent contractual obligation with you.

/r/bestof Thread Link - reddit.com