Allegations concerning restaurant accounts
The Federal Trade Commission, California local authorities and attorneys general from seven states filed a lawsuit against Toast and affiliated entities on 29 October. The complaint alleges that the restaurant software and payments company charged hidden or unauthorised fees, enrolled customers in add-ons without consent, made cancellation difficult and failed to deliver advertised support. The case is pending, and the allegations have not been adjudicated.
Contracts, processing and finance are intertwined
The FTC says Toast subscriptions average about $900 per month depending on terminals and add-ons. It alleges that some customers faced undisclosed early-termination charges, continuing processing fees during temporary closure and acceleration of outstanding Toast Capital balances when cancelling or changing providers. Regulators also cite a former $0.99 fee added to some online consumer orders. For payment providers and merchants, the filing highlights risks when software, processing, hardware and embedded finance are bundled under different renewal, termination and default provisions. Clear enrolment evidence and accessible cancellation records may become central to defending such arrangements.
What it means for merchants
Merchants should review auto-renewal, add-on consent, early-termination and linked-finance clauses before signing; providers should retain affirmative consent and present all mandatory charges and cancellation consequences clearly.
Read the original announcement
Federal Trade Commission · 29 Oct 2026This brief summarizes the linked primary source. Claims and reported figures have not been independently audited by Payment Guide.