The US Federal Trade Commission and state and local officials have sued restaurant software provider Toast, alleging that customers faced undisclosed charges, unwanted add-ons and difficulties canceling subscriptions.
The case, filed on October 29, concerns software and payment services that restaurants use to take orders, process transactions and manage other parts of their businesses. The FTC says the complaint will be decided by a court. Toast disputes the allegations and says it will defend itself.
The dispute gives restaurant operators a reason to examine the full cost of their technology contracts, including payment-processing charges, the cost of add-ons and what happens if they switch providers.
Regulators allege hidden charges
According to the FTC announcement, Toast sells subscriptions billed monthly, with prices that can depend on the number of terminals and additional services. The agency alleges some restaurants were billed for add-ons without their consent.
The complaint also questions a plan advertised with hardware and software for $0 per month in exchange for higher payment-processing fees. The FTC alleges other charges were not clearly disclosed, including an early termination fee calculated at $150 for each remaining contract month. These are allegations, not findings of liability.
The agency says the complaint also addresses a 99-cent charge added to certain online orders above $10 between September 2021 and late July 2023. The FTC alleges that the charge went to Toast and was not adequately disclosed to diners or restaurants.
Toast disputes the claims
In its October 29 response, Toast said it strongly disagreed with the lawsuit. It also challenged the FTC’s application of an online subscription law to its commercial agreements with restaurants.
Toast said it had cooperated with the FTC review since mid-2025 and had tried to resolve the matter without litigation. Its statement said the lawsuit did not change its customer service, pricing or support.
What restaurants can check
A point-of-sale system combines hardware and software for taking orders and accepting payment. The headline monthly price may be only one part of its cost. A comparison can also include processing charges, software modules, equipment obligations and termination terms.
Owners with financing tied to a provider may also want to read how a switch affects repayment. The FTC alleges that some Toast loan terms can make cancellation more costly; whether those allegations are established remains for the court.
Different restaurants have different contracts and transaction volumes. A business considering a change can request its full written terms and a current itemized bill before comparing alternatives. Our earlier reporting on small retailers and payment devices examined a separate issue: the support needed to put payment technology into use.
