Gulags?

Can someone please eli5 me why this legal? This is truly above my pay grade apparently

I think about kinsman and the awesome Hollywood physics used in this movie

https://movies.stackexchange.com/questions/31162/why-do-they-go-to-the-toilet-and-put-the-hose-in-it-to-breathe#31254

To be fair, it is (briefly) explained in the movie. Especially the big Tower: merchandise.

Look i am not a financial advisor or anything: bir his dude had some killer marketing skills, financial skills and time management skills