Ok, good point that I mixed illegal activity. I've worked at various companies that banned: strong perfumes, buttered microwave popcorn, flags or banners of any kind, food or eating in the work area, taking personal calls for more than a few minutes, electronic shopping at work, "provocative" pictures that included beach photos, required business casual, forced employees to use a mac or pc, no personal computers connected to the network, no alcoholic beverages, no smoking anywhere on company property, random pee in a cup drug tests with someone watching, required on-site physicals or no health insurance, no office dating, no profanity, etc. The list goes on and on. Everyone will find some or most as ridiculous if not insulting.
My point is an employer has freedoms, which I'll admit we don't always like the OPs situation, but that's the price of a free society. If you own it then you make the rules. If you don't like someone's rules, then you find someone else more aligned with your beliefs. Freedoms need to be universally respected, otherwise a fixation on one's own freedom is more akin to anarchy.