Complete nonsense. Your broker has NO obligation whatsoever to let you trade the stocks it does not want to and can pretty much charge you whatever for whatever. It is a private business plain and simple you have pretty much no right and no say.
WRONG! It is a valid exemption when used properly to raise capital. But it is being abused as a "BLANK CHECK" to issue as many shares as possible with no intent on raising capital for company growth but running promotions and enriching others. It is simply a tool of fraud and thus if you read the whole write up and its issues you would understand why it has become a sore spot for all involved in trading.
The rule is valid, but quite often, the exemption is NOT. Quite a few of these companies are utilizing an exemption to which they are not entitled. Thus, a massive amount of new common shares are freed from restriction, become free-trading and are sold into the market (usually in conjunction with paid promotions) without legal basis.