The Federal Trade Commission (FTC), along with the Attorneys General from several states, has initiated legal action against Toast Inc., a company that provides software and payment processing services to restaurants. The lawsuit accuses Toast of imposing hidden and unauthorized fees, failing to deliver promised customer support, and creating obstacles for customers wishing to cancel their subscriptions.

According to the complaint, Toast's subscription model requires restaurants to enroll in auto-renewing plans that often include add-on services without clear consent. Customers have reported being charged for these add-ons without their knowledge, and the company has allegedly misled clients about the costs associated with its services.

Furthermore, the complaint highlights that Toast has implemented a complicated cancellation process that can lead to unexpected charges. Customers must provide written notice to cancel, and many have faced difficulties in receiving responses or have been subjected to high early termination fees. This has resulted in some customers incurring significant costs just to terminate their subscriptions.

Additionally, the lawsuit claims that Toast falsely advertises its customer support as being available 24/7, while many users have experienced challenges in accessing timely assistance. The FTC emphasizes that these practices violate consumer protection laws and harm small businesses that rely on transparent and reliable services.

The case has been filed in the U.S. District Court for the Northern District of California, and the FTC is committed to ensuring a fair marketplace for consumers.