FTC and state plaintiffs sue Toast over restaurant fees and cancellations; Toast disputes the claims
The FTC and state plaintiffs accuse Toast of false "$0" hardware and 24/7 support claims, unauthorized fees and cancellation barriers. Toast disputes the allegations and argues that ROSCA, a federal online-subscription law, does not cover its negotiated business contracts.
Case period:
Published by The Dispute Index editorial teamPublished Updated
Overview
The Federal Trade Commission, seven state attorneys general and the People of California sued Toast, Inc. and four of its subsidiaries on October 29, 2026, in the U.S. District Court for the Northern District of California. The complaint alleges that Toast falsely advertised "$0" hardware and "24/7/365" customer support, charged fees and add-on subscriptions without consent, hid fees and made subscriptions hard to cancel. Toast says it strongly disagrees with the allegations and will defend the case.
The FTC brings three counts under the FTC Act, all plaintiffs bring three under the Restore Online Shoppers' Confidence Act, or ROSCA, and each state plaintiff adds claims under its own consumer-protection law. Toast argues that ROSCA, a federal law on subscriptions sold online, does not apply to its negotiated contracts with restaurants. The complaint says customers enroll through Toast's online checkout or by signing order forms online.
Read the full background
The plaintiffs are the FTC, the attorneys general of Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma and Utah, and the People of California through the Los Angeles County Counsel and San Francisco City Attorney. The complaint says Toast's "$0" Starter Kit still carries costs shown only in fine print, including the full hardware price if card processing does not start within 120 days. It cites Toast's 25-page Merchant Agreement: the 30-day written notice needed to stop renewal is in Section 8.1, and the early termination fee, $150 for each remaining month on the Pay-as-you-Go plan, is in Section 8.4. It says Toast treats canceling or switching providers as a default on a Toast Capital loan. It also says Toast charged diners a $0.99 fee on online orders over $10, starting at some restaurants around September 2021 and at all of them by June 2023, kept the money, dropped the fee in late July 2023 and has not refunded it. Toast says the FTC disregarded information showing how far its restaurant customers negotiate their contracts.
Timeline
1 timeline entry on this page. Dates: October 29, 2026
October 2026
FTC and state plaintiffs sue Toast
Claim
The FTC, seven state attorneys general and the People of California filed a complaint against Toast, Inc. and four subsidiaries in the U.S. District Court for the Northern District of California (No. 3:26-cv-12705). It pleads FTC Act, ROSCA and state consumer-protection claims over "$0" pricing, "24/7/365" support promises, fees charged without consent and cancellation barriers. Toast issued a response the same day.
[01]Federal Trade Commission
The FTC describes allegations in its complaint against Toast and affiliated companies. The court will decide the claims.
FTC and States Take Action Against Toast Inc. over Hidden and Unauthorized Fees, Deceptive Subscription and Cancellation Practices and Other Unlawful Conduct · Federal Trade CommissionOpening statement; enrollment, cancellation and support sections[02]Federal Trade Commission
Complaint for permanent injunction, monetary judgment, civil penalty judgment and other relief, filed October 29, 2026, in the U.S. District Court for the Northern District of California by the FTC, seven state attorneys general and the People of California. Some figures and internal Toast documents are redacted in the public copy. The claims are allegations the court has not decided.
FTC et al. v. Toast, Inc. et al., No. 3:26-cv-12705 (N.D. Cal.): redacted complaint · Federal Trade CommissionDocument 1, filed 2026-10-29, 71 pages: paragraphs 1-111 (parties and allegations) and Counts I-XXI with prayer for relief, pages 39-61[03]Toast, Inc.
Toast company statement distributed by Business Wire, available in this syndicated copy.
Toast Responds to FTC Lawsuit · Toast, Inc.Opening three paragraphs of the Toast-issued release
Claims
Claims separate what was said from what is contested. Follow each source for the original wording and context.
What's disputed
Disputed claim
Federal Trade Commission
Toast misrepresented its costs and customer support, charged hidden or unauthorized fees and made subscription cancellation difficult.
What is disputed
Toast's challenged fee, subscription and cancellation practices.
Sources (2)
- FTC and States Take Action Against Toast Inc. over Hidden and Unauthorized Fees, Deceptive Subscription and Cancellation Practices and Other Unlawful Conduct · Federal Trade CommissionOpening statement; enrollment, cancellation and support sections
- FTC et al. v. Toast, Inc. et al., No. 3:26-cv-12705 (N.D. Cal.): redacted complaint · Federal Trade CommissionDocument 1, filed 2026-10-29, 71 pages: paragraphs 1-111 (parties and allegations) and Counts I-XXI with prayer for relief, pages 39-61
Disputed claim
Toast, Inc.
ROSCA does not apply to Toast's negotiated business-to-business agreements.
What is disputed
Toast's challenged fee, subscription and cancellation practices.
Sources (1)
- Toast Responds to FTC Lawsuit · Toast, Inc.Opening three paragraphs of the Toast-issued release
Response record
Responses
Choose one response filter, or select All responses to see the full record.
2 matching responses. Newest first.
Toast, Inc.Company responding to the lawsuitDirectly involvedBefore this statement
Toast issued its response the day the suit was filed.
"We strongly disagree with the allegations in the lawsuit filed by the FTC and will vigorously defend the Company against the FTC's claims."
DeniedCase context: FTC and state plaintiffs sue Toast over restaurant fees and cancellations; Toast disputes the claims
Full statement and sources
Toast rejects the lawsuit's allegations and says it will defend the company.
After the statement
Toast says no court has held that ROSCA applies to negotiated business-to-business agreements, and that the FTC disregarded information showing how far its restaurant customers negotiate their contracts.
Toast Responds to FTC Lawsuit · Toast, Inc.Opening three paragraphs of the Toast-issued releaseWhy this label?
Toast expressly rejects the allegations about the fee and subscription practices under scrutiny.
This label describes the statement's response within the context above.
Federal Trade CommissionFederal consumer-protection agency, speaking through Bureau of Consumer Protection Director Christopher MufarrigeDirectly involvedBefore this statement
The FTC announced the lawsuit it filed against Toast with seven state attorneys general and two California local government offices.
"Toast failed to honor a number of its promises and instead imposed hidden fees, unauthorized charges and subscription traps that drained the hard‐earned profits of businesses just trying to serve their customers."
CondemnedCase context: FTC and state plaintiffs sue Toast over restaurant fees and cancellations; Toast disputes the claims
Full statement and sources
The FTC criticizes Toast's fees and subscription practices as broken promises that harmed restaurant businesses.
After the statement
The FTC says the complaint alleges violations of the FTC Act, the Restore Online Shoppers' Confidence Act and related state laws.
FTC and States Take Action Against Toast Inc. over Hidden and Unauthorized Fees, Deceptive Subscription and Cancellation Practices and Other Unlawful Conduct · Federal Trade CommissionOpening statement; enrollment, cancellation and support sectionsWhy this label?
The statement criticizes the fee and subscription practices under scrutiny in this case.
This label describes the statement's response within the context above.
Sources
(3)
Official statement
FTC and States Take Action Against Toast Inc. over Hidden and Unauthorized Fees, Deceptive Subscription and Cancellation Practices and Other Unlawful Conduct
Relevant passage: Opening statement; enrollment, cancellation and support sections
About this source
The FTC describes allegations in its complaint against Toast and affiliated companies. The court will decide the claims.
- Author
- Federal Trade Commission
- Published
- Accessed
Official statement
Toast Responds to FTC Lawsuit
Relevant passage: Opening three paragraphs of the Toast-issued release
About this source
Toast company statement distributed by Business Wire, available in this syndicated copy.
- Author
- Toast, Inc.
- Published
- Accessed
Original text
FTC et al. v. Toast, Inc. et al., No. 3:26-cv-12705 (N.D. Cal.): redacted complaint
Relevant passage: Document 1, filed 2026-10-29, 71 pages: paragraphs 1-111 (parties and allegations) and Counts I-XXI with prayer for relief, pages 39-61
About this source
Complaint for permanent injunction, monetary judgment, civil penalty judgment and other relief, filed October 29, 2026, in the U.S. District Court for the Northern District of California by the FTC, seven state attorneys general and the People of California. Some figures and internal Toast documents are redacted in the public copy. The claims are allegations the court has not decided.
- Author
- Federal Trade Commission and state plaintiffs
- Published
- Accessed
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Cite this record
- Publisher
- The Dispute Index
- Title
- FTC and state plaintiffs sue Toast over restaurant fees and cancellations; Toast disputes the claims
- First published
- Last updated
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- https://disputeindex.com/cases/ftc-toast-hidden-fees-subscriptions-rosca
The Dispute Index. "FTC and state plaintiffs sue Toast over restaurant fees and cancellations; Toast disputes the claims". First published: 2026-10-30. Last updated: 2026-10-30. https://disputeindex.com/cases/ftc-toast-hidden-fees-subscriptions-rosca