Toast Inc. sued by FTC and states over alleged hidden fees

The Federal Trade Commission, along with eight states and local counsels from Los Angeles and San Francisco, has filed a lawsuit against Toast Inc. The complaint alleges that the restaurant technology provider engaged in deceptive practices by charging hidden and unauthorized fees, enrolling businesses in unwanted subscription add-ons, and making it difficult to cancel services.

According to the filing, Toast allegedly enrolled restaurants in services such as employee timekeeping and payroll processing without their consent. The lawsuit also claims the company imposed undisclosed fees on hardware and software costs and unilaterally charged some patrons a $0.99 fee without adequate disclosure.

Furthermore, the complaint describes a complex, multi-step cancellation process that has reportedly caused some customers to incur months or years of unwanted charges, including early termination fees that in one instance exceeded $5,000. Toast, which provides point-of-sale services to approximately 180,000 restaurants worldwide, has denied the charges and vowed to defend itself.