FTC and Nine States Sue Toast Inc. Over Hidden Fees and Deceptive Practices
Federal and state regulators allege the restaurant software firm misled customers on pricing, support, and cancellation terms.
The Federal Trade Commission, joined by California prosecutors and the attorneys general of eight additional states, filed a federal lawsuit against Toast Inc., the restaurant software and financial technology company, over allegations of deceptive pricing and unlawful business practices.
Regulators contend that Toast misrepresented the true costs of its services, burying fees that customers did not anticipate and were not clearly disclosed at the point of sale. The complaint also challenges what the agencies describe as unauthorized charges billed to merchants without sufficient consent.
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The coalition of enforcers further alleges that Toast made false or misleading claims about the quality of its customer support, specifically its advertised "24/7/365" assistance, which plaintiffs argue did not match the experience delivered to restaurant operators relying on the platform.
Subscription and cancellation practices are also at the center of the complaint. Authorities allege the company made it unreasonably difficult for customers to exit their agreements, a pattern regulators have increasingly targeted across the technology and subscription-services sectors in recent years.
The action unites California's Los Angeles County Counsel and San Francisco City Attorney alongside the attorneys general of Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma, and Utah — a broad, multistate coalition signaling coordinated scrutiny of fintech firms serving small and mid-sized businesses. Continue reading at Press Release Feed.
