FTC and states sue Toast Inc. over hidden fees and deceptive subscription practices

The FTC and multiple state attorneys general filed a lawsuit alleging Toast Inc. imposes hidden and unauthorized fees, enrolls customers in add-on services without consent, and makes subscription cancellation difficult. The complaint details practices such as mandatory $85 monthly payment-processing fees for closed restaurants, undisclosed early termination fees, and a $0.99 fee on customer orders without restaurant consent.

Why it matters. Restaurants using Toast's point-of-sale and payment services face unexpected costs and barriers to canceling, potentially affecting millions of small businesses and their customers; the case could reshape fee disclosure and subscription…