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FL AG Investigates Robinhood Crypto Over Deceptive Trading Cost Claims

Robinhood Crypto, LLC.July 10, 2025Florida Attorney General

Summary

Florida Attorney General James Uthmeier launched an investigation into Robinhood Crypto, LLC for allegedly deceptive practices regarding trading costs. The AG issued a subpoena seeking internal documents to determine if Robinhood violated Florida's Deceptive and Unfair Practices Act by falsely claiming to offer the lowest crypto trading costs. Robinhood must respond by July 31, 2025.

Contract Impact

In-house legal teams should review customer-facing agreements (e.g., Terms of Service, user agreements) and any marketing or advertising partnership contracts for clauses related to pricing representations, fee disclosures, and cost comparisons. Specifically, scrutinize any guarantees or claims about 'lowest cost,' 'best price,' or 'most crypto for your money.' Evaluate the adequacy of disclosures regarding the payment for order flow (PFOF) revenue model and its potential impact on execution prices. Contracts may need amendments to require substantiation for comparative cost claims, implement clearer PFOF disclosures, and include audit rights to verify trading cost calculations against competitors.

Contract Search Terms

lowest cost guaranteeprice comparison claimspayment for order flow disclosuremarketing representationsadvertising claimsfee structure transparencytrading cost comparisonscustomer transaction costs

Laws Cited

Florida’s Deceptive and Unfair Practices Act

Violation Types

Entity Details

Entity

Robinhood Crypto, LLC.

Also known as: Robinhood

Industry

Financial Services

Official Sources

Source Evidence

Entity Name
"Robinhood Crypto, LLC."
Laws Cited
"Florida’s Deceptive and Unfair Practices Act"
Violation Types
"by falsely promoting its crypto platform as the least expensive way to purchase crypto—when there is evidence to suggest that is not true."

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