The Federal Trade Commission and state officials sued restaurant technology company Toast on Thursday, alleging that its billing and cancellation practices left businesses paying hidden fees and unwanted subscription charges. This Toast lawsuit highlights significant concerns among business owners.
Toast disputed the allegations and said it would defend the case. The lawsuit is pending, and the claims have not been decided by a court.
The ongoing Toast lawsuit has garnered attention from small business owners across the country.
The case puts a common small-business concern into national focus: what happens when the software used to take orders, process payments and run payroll becomes difficult or costly to leave.
What the lawsuit says
The FTC’s announcement says restaurants were charged for add-ons without consent and faced cancellation barriers. Regulators also allege that Toast failed to deliver the customer support it advertised.
One disputed practice concerns a 99-cent fee added to certain online orders above $10 between September 2021 and late July 2023. Regulators say that fee went to Toast, not the restaurants, and lacked adequate disclosure or consent. That allegation concerns a past practice, not a claim that the same fee is being imposed today.
The complaint filed Oct. 29 seeks court orders and financial relief under federal and state law. The plaintiffs include the FTC, seven state attorneys general and California officials acting through Los Angeles County and San Francisco.
Toast rejects the claims
In an Oct. 29 statement, Toast said it strongly disagreed with the allegations. The company challenged the FTC’s effort to apply the Restore Online Shoppers’ Confidence Act, known as ROSCA, to negotiated business-to-business agreements.
Toast said it had cooperated with the agency’s review since mid-2025 and tried to resolve the dispute without litigation. It also said the lawsuit would not change its customer service, pricing or support.
What remains unresolved
The case was filed in the U.S. District Court for the Northern District of California. The FTC’s case record lists it as pending.
A filed lawsuit is not a refund program or a final finding of wrongdoing. No automatic payment to restaurant owners is established by the announcement. The court will decide the contested claims and any relief.
This report does not identify a Mohawk Valley restaurant as a complainant or establish that a local business was affected. The national case concerns restaurant software contracts, billing and cancellation practices rather than a finding against any restaurant using Toast.
