The FTC and state and local enforcers sued restaurant-services company Toast Inc. and affiliates on Oct. 29, 2026 over hidden fees and subscription practices.
The case was filed in the U.S. District Court for the Northern District of California. Toast provides point-of-sale hardware, software and payment processing for restaurants. The claims center on advertised prices, added order fees, renewals and cancellation.
Official resource:
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Table of Contents
- Who brought the case?
- Which fees were allegedly hidden?
- How did renewals and cancellation allegedly work?
- What laws are at issue and how has Toast responded?
- What should affected restaurants and diners do?
Who brought the case?
The plaintiffs include the FTC and the attorneys general of Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma and Utah. Los Angeles County Counsel and the San Francisco City Attorney joined for California, according to the Bay Area Brief. LexBlog reports the action was filed Oct.
29, 2026 in the Northern District of California in its summary of the filing. The agencies seek an injunction, refunds and civil penalties. QSR Web reports the FTC authorized the suit by a 2-0 vote. No court-ordered relief exists yet because the claims await decision.
Which fees were allegedly hidden?
The complaint says Toast advertised $0-per-month hardware and software under Pay-as-You-Go while charging higher processing fees and undisclosed added costs, according to Insurance Journal. A restaurant could expect no monthly software charge yet pay more on each card payment. That split makes competing offers hard to compare.
The Bay Area Brief reports Toast added a $0.99 fee to certain online orders over $10 in its account of the order-fee claim. The fee ran from September 2021 through late July 2023, went to Toast and totaled over $5.5 million before suspension. Diners likely saw the charge at checkout while the restaurant fielded complaints for money it never kept.
How did renewals and cancellation allegedly work?
QSR Web reports restaurants were placed in auto-renewing subscriptions averaging about $900 monthly in its coverage of the subscription claims. Regulators say Toast also enrolled businesses in add-ons such as timekeeping, payroll and payroll-tax filing without consent. A small restaurant could pay each month for software it never chose. LexBlog reports cancellation required 30 days written notice with no simple online path.
Requests went to a weekday-only internal line. Each remaining contract month carried a $150 charge. That structure raises the cost of leaving. For example, ten months left on a contract would mean $1,500 in added charges under the alleged formula.
What laws are at issue and how has Toast responded?
The suit invokes FTC Act Section 5(a) and Restore Online Shoppers Confidence Act Section 4 plus state auto-renewal laws, according to QSR Web. State consumer-protection claims are also included. It seeks an injunction, refunds and civil penalties.
LexBlog notes Toast states it strongly disagrees and will vigorously defend itself. The company says it cooperated since mid-2025. It argues ROSCA covers online consumer subscriptions rather than negotiated business-to-business restaurant contracts.
What should affected restaurants and diners do?
The claims remain allegations awaiting a court decision, so no refund program exists yet, according to QSR Web. Restaurants and diners should preserve records showing what they agreed to, paid and tried to cancel. Keep these items together in one folder.
Focus on documents that prove enrollment, price and exit attempts. Review statements for the $0.99 line item and for timekeeping or payroll add-ons you did not approve. Keep copies outside the Toast portal so you can share them quickly if relief becomes available.
- Signed contracts, renewal notices and price schedules showing monthly and processing rates.
- Monthly bills and processor statements showing add-on charges and the $0.99 online-order fee.
- Cancellation requests, call logs, emails and confirmation or denial messages with dates.