Federal regulators and a coalition of state attorneys general have filed a legal action against restaurant software provider Toast Inc., accusing the company of imposing deceptive subscription practices and obscured charges on businesses.
The U.S. Federal Trade Commission, alongside attorneys general from several states and two California jurisdictions, launched the lawsuit on Wednesday. According to the regulatory agency’s public statement, the legal challenge targets specific operational methods employed by the software firm.
Regulators allege that Toast Inc., publicly traded under the ticker symbol TOST.N, subjects restaurant clients to hidden financial charges, aggressively markets unwanted subscription add-ons, and implements overly burdensome hurdles that make terminating services difficult for customers.
The coordinated legal effort underscores increasing scrutiny on software and subscription models across the technology sector, particularly regarding transparency in billing and consumer contract cancellations. The company faces accountability under federal and state consumer protection frameworks as the litigation proceeds.
