Restaurants that use Toast’s point-of-sale and payment services are at the center of a lawsuit the FTC and seven states filed against Toast Inc. on October 29, 2026, alleging hidden fees, unwanted add-ons and hard-to-cancel subscriptions. Toast disputes the claims, and there is no refund program or claim form.
Allegations Only · No Settlement Yet
This article describes a government enforcement complaint. The statements below are unproven allegations. Toast Inc. has not been found liable, and there is nothing to claim at this time. This page is informational. It is not legal advice.
What Is This About?
The Federal Trade Commission sued Toast Inc. and affiliated companies on October 29, 2026, in the U.S. District Court for the Northern District of California. The attorneys general of Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma and Utah joined the case, along with the People of the State of California acting through the Los Angeles County Counsel and the San Francisco City Attorney.Toast sells point-of-sale hardware, software and payment processing to restaurants, plus small-business loans called Toast Capital. The complaint alleges the company hid fees, charged for add-ons customers did not agree to, failed to provide the “24/7/365” support it advertises, and made subscriptions hard to cancel.
The FTC says the conduct violates the FTC Act, the Restore Online Shoppers’ Confidence Act (ROSCA) and related state laws. The Commission voted 2-0 to file. Toast disputes the allegations, and no court has ruled.
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The Alleged Fees
According to the FTC, Toast advertises a “Pay-as-you-Go” plan with $0-per-month hardware and software in exchange for higher per-transaction processing fees, but layers on costs it does not clearly disclose. Examples the agency gives:- Customers who do not start processing payments within 120 days must return all hardware or pay its full retail value.
- Restaurants that close temporarily must still pay $85 a month for payment processing.
- Customers who cancel early owe an undisclosed termination fee of $150 for each remaining month of the contract.
The $0.99 Charge on Online Orders
The part of the case that reaches diners directly involves online ordering. The FTC alleges that from September 2021 through late July 2023, Toast added a $0.99 fee to certain online orders over $10 placed through its platform, without adequate disclosure to, or consent from, the people ordering or the restaurants.According to the complaint, that fee went to Toast, not to the restaurant, and came on top of the fees restaurants already paid Toast. The lawsuit does not set up any way for diners to recover those charges.
Cancellation and Toast Capital Loans
The FTC alleges Toast requires 30 days’ written notice of an “intent not to renew,” a requirement it says is not clearly disclosed during sign-up. Customers who send notice report getting no response and further charges, according to the complaint, while others are routed to calls or chats that question why they want to cancel and pitch them to stay.The complaint cites one restaurant owner charged a $5,318.87 early termination fee after four years, which Toast allegedly refused to refund.
It also alleges that canceling is costlier for restaurants with a Toast Capital loan balance. According to the FTC, Toast treats a cancellation or a switch to another provider as a loan default and demands immediate repayment of the full outstanding balance.
The “24/7/365” Support Claim
The FTC says nearly every page of Toast’s website promises round-the-clock help from “real people,” and each subscription package lists “24/7/365 support.” The complaint alleges customers often cannot reach anyone able to help. It cites a restaurant owner who called on a Saturday and was told the team that could fix his problem did not work weekends, which the FTC says cost his business thousands of dollars in card transactions.What Toast Says
Toast has said it strongly disagrees with the allegations, according to reporting by Nation’s Restaurant News and The Boston Globe. The company argues that ROSCA, a law about online subscriptions, does not cover the contracts restaurants negotiate with Toast. It also says it had been cooperating with the FTC’s review since mid-2025, including efforts to resolve the matter without a lawsuit.In its press release, the FTC notes that it files a complaint when it has “reason to believe” the law is being violated, and that the case will be decided by the court.
What Happens Next
Toast will respond to the complaint in federal court. The case could be resolved by a court ruling or a settlement. Government settlements sometimes include refunds, but none has been announced here, and there is no refund program, claim form or deadline.Questions
Can restaurants or diners get money from the Toast lawsuit?
Not at this stage. This is a government enforcement lawsuit, not a class action, and no court has ruled. There is no refund program or claim form. Refunds would exist only if a court ordered them or Toast agreed to them in a settlement.
What was the $0.99 Toast fee?
According to the FTC, from September 2021 through late July 2023 Toast added a $0.99 fee to certain online orders over $10 placed through its platform. The FTC alleges the fee went to Toast rather than the restaurant and was charged without adequate disclosure to, or consent from, diners or restaurants.
What does Toast say about the lawsuit?
Toast has said it strongly disagrees with the allegations. According to news reports, the company argues that the federal subscription law the FTC relies on does not cover the contracts restaurants negotiate with Toast, and says it had been cooperating with the FTC’s review since mid-2025.
Which states joined the FTC?
The attorneys general of Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma and Utah joined the FTC, along with the People of the State of California acting through the Los Angeles County Counsel and the San Francisco City Attorney.
Sources
- FTC press release: FTC and States Take Action Against Toast Inc. (October 29, 2026)
- FTC case page: Toast, Inc.
- Nation’s Restaurant News: Toast is sued by the FTC over alleged hidden fees, 24/7 support claims
- The Boston Globe: Toast sued by FTC, states, accused of charging hidden fees
