FTC and state authorities sue Toast over fees and cancellation practices

The Federal Trade Commission and state and local authorities sued Toast and affiliated entities, alleging the restaurant software and payments company imposed hidden fees, charged for unwanted add-ons and obstructed subscription cancellations. The complaint was filed in the U.S. District Court for the Northern District of California. The complaint alleges that customers seeking to cancel face an undisclosed early termination fee of $150 for each remaining contract month. It also alleges that Toast treats cancellation or a switch to another provider as a default for customers with outstanding Toast Capital loans, requiring immediate repayment of the balance. The authorities allege violations of federal and state laws. The court will decide the case.