FTC accuses Toast of hidden fees and subscription traps
Federal Trade CommissionFederal consumer-protection agency, speaking through Bureau of Consumer Protection Director Christopher Mufarrige
The FTC criticizes Toast's fees and subscription practices as broken promises that harmed restaurant businesses.
“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.”
Official statement
Where this statement fits
FTC and state plaintiffs sue Toast over restaurant fees and cancellations; Toast disputes the claims
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.
Source and context
Official statement
About this source
The FTC describes allegations in its complaint against Toast and affiliated companies. The court will decide the claims.
Archived copy (opens in a new tab)Before the quotation
The FTC announced the lawsuit it filed against Toast with seven state attorneys general and two California local government offices.
After the quotation
The FTC says the complaint alleges violations of the FTC Act, the Restore Online Shoppers' Confidence Act and related state laws.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
The statement criticizes the fee and subscription practices under scrutiny in this case.
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More from this case
Read the full caseToast rejects the FTC lawsuit's allegations
Toast, Inc.
“We strongly disagree with the allegations in the lawsuit filed by the FTC and will vigorously defend the Company against the FTC's claims.”Read statement
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The Dispute Index. "FTC accuses Toast of hidden fees and subscription traps". First published: 2026-10-30. Last updated: 2026-10-30. https://disputeindex.com/events/7265-the-ftc-criticizes-toast-s-fees-and-subscription