Maybe someone more knowledgeable can answer. Does Robinhood’s terms of service stipulate they can do this?
If it is anything like the other “free” online services, they state in black and white that they can do things like this. But none of the users read the terms and are now acting shocked that an entirely predictable thing happened.
Not that the behavior is at all ethical. But it may be written into the contract language that each user agreed to.
A whole lot of people learning to read the ToS, the hard way. RH, FB, Twitter, you name it. Buyer beware of free services, there are strings attached, and you agreed to them.
Maybe someone more knowledgeable can answer. Does Robinhood’s terms of service stipulate they can do this? If it is anything like the other “free” online services, they state in black and white that they can do things like this. But none of the users read the terms and are now acting shocked that an entirely predictable thing happened. Not that the behavior is at all ethical. But it may be written into the contract language that each user agreed to.
Edit: it is exactly what I suspected:
https://old.reddit.com/r/wallstreetbets/comments/l78z95/digging_into_the_robinhood_tos_and_how_they_might/
A whole lot of people learning to read the ToS, the hard way. RH, FB, Twitter, you name it. Buyer beware of free services, there are strings attached, and you agreed to them.
Thanks for finding and posting the info!