The Federal Trade Commission and a group of state and local authorities have sued Toast Inc., alleging that the restaurant-technology company imposed hidden or unauthorized fees, enrolled customers in unwanted add-ons and made subscriptions difficult to cancel.
The complaint says Toast’s restaurant clients pay about $900 a month on average, depending on terminals and add-ons. It alleges that some customers were charged for services without consent, that important conditions attached to a “Pay-as-you-Go” plan were not clearly disclosed, and that early termination could trigger charges of $150 for every remaining month. The filing also challenges Toast’s representations about round-the-clock customer support.
The FTC, California officials and the attorneys general of seven states allege violations of the FTC Act, the Restore Online Shoppers’ Confidence Act and state law. Toast has not been found liable; the claims will be decided by the U.S. District Court for the Northern District of California. The FTC case record includes the filed complaint.
