Florida Attorney General James Uthmeier has initiated an investigation into Robinhood Crypto, alleging misleading marketing regarding its pricing for digital asset purchases. The AG's office claims that Robinhood's assertion of being the 'lowest cost on average' for crypto may be deceptive, leading consumers to believe they are getting better deals than they actually are. A subpoena has been issued for internal documents related to pricing strategies and user trade data to evaluate potential violations of Florida's Deceptive and Unfair Trade Practices Act. The investigation specifically targets Robinhood's business model that relies on payment for order flow, which may inflate costs despite the platform's low-fee claims. The AG also highlighted the importance of transparency in marketing practices, suggesting that Robinhood must substantiate its claims with credible evidence. The probe aligns with broader scrutiny of Robinhood's operations, which previously faced regulatory challenges concerning its order flow practices.

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