Published • loading... • Updated
Boston-Based Toast 'Prepared to Defend' Against Federal Lawsuit
The complaint says Toast charged restaurants about $900 a month on average and added hidden fees, while making cancellations difficult and costly.
- On Thursday, the Federal Trade Commission and eight states sued Boston-based Toast, alleging the restaurant software provider imposed hidden fees and deceptive cancellation barriers that trapped customers in costly subscription agreements.
- Toast allegedly added obscure $0.99 fees to online orders above $10 from September 2021 through July 2023 without proper disclosure, while promising "24/7/365 support" that customers frequently struggled to access when attempting to cancel.
- Consumers face $150 monthly early termination fees and must return hardware or pay full retail price if they fail to process payments within 120 days, despite Toast advertising a "$0" hardware plan.
- Toast "strongly" disagrees with the allegations, arguing the Restore Online Shoppers' Confidence Act does not apply to negotiated business-to-business agreements and stating it "will vigorously defend" itself in court.
- The lawsuit seeks a permanent injunction, civil penalties, and financial restitution as Toast prepares to report third-quarter financial results on Tuesday, positioning the company amid significant regulatory and financial scrutiny.
Insights by Ground AI
31 Articles
31 Articles
Toast Is Facing an FTC Lawsuit Over Hidden Fees and Subscription Traps
The FTC and eight states allege the restaurant software company enrolled customers in unwanted add-ons, obscured cancellation terms, and kept billing some businesses. Toast says it will vigorously defend itself.
·New York, United States
Read Full Article
FTC Lawsuit Against Toast
A restaurant can change its menu, its prices, or even its location. But switching the company that handles its orders and payments can trigger thousands of dollars in charges, according to a new federal lawsuit that puts a major restaurant technology provider under scrutiny. The Federal Trade Commission and officials from seven states sued Toast […]
·Dallas, United States
Read Full Article
Coverage Details
Total News Sources31
Leaning Left3Leaning Right3Center12Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 16%
Factuality
To view factuality data please Upgrade to Premium
