No one's saying you can't freelance. But there are some pretty clear rules about what you should be able to do in order to really be a freelancer: choose which jobs you take, set your own hours, decide how you want to do the job, how you dress, etc.
What's not OK is when the company wants all the advantages of having contractors but still wants to dictate all these things.
What's not OK is when the company wants all the advantages of having contractors but still wants to dictate all these things.