--- title: FTC and eight states sue Toast over hidden fees and... description: The FTC and eight states have sued Toast, the restaurant software and payments company, over hidden fees and hard-to-cancel contracts. The complaint alleges... canonical: https://daily.dev/posts/ftc-and-eight-states-sue-toast-over-hidden-fees-and-hard-to-cancel-plans-rd2dwfugy twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: FTC and eight states sue Toast over hidden fees and hard-to-cancel plans | daily.dev og:description: The FTC and eight states have sued Toast, the restaurant software and payments company, over hidden fees and hard-to-cancel contracts. The complaint alleges... og:url: https://daily.dev/posts/ftc-and-eight-states-sue-toast-over-hidden-fees-and-hard-to-cancel-plans-rd2dwfugy og:image: https://api.daily.dev/og/posts/RD2dWfUGy.png og:image:alt: FTC and eight states sue Toast over hidden fees and hard-to-cancel plans og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # FTC and eight states sue Toast over hidden fees and hard-to-cancel plans **[The Next Web](https://daily.dev/sources/tnw)** · 4 min read · 0 upvotes · 0 comments ## Summary The FTC and eight states have sued Toast, the restaurant software and payments company, over hidden fees and hard-to-cancel contracts. The complaint alleges restaurants pay around $900 a month on average despite a '$0' hardware plan, plus a $150 fee for each month left on the contract if they cancel early. One customer was charged $5,318.87 to cancel after four years. From September 2021 to July 2023 Toast added a $0.99 fee to online diner orders over $10, which the complaint alleges was not properly disclosed. Toast disputes the claims, saying ROSCA doesn't cover its negotiated business contracts, and the complaint puts its 2025 revenue at $6.153bn. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### What does the FTC lawsuit against Toast allege about hidden fees? The FTC and eight states allege Toast charged hidden and unauthorized fees, including an undisclosed $150 per month early termination fee and a non-consensual $0.99 fee added to diner orders over $10 between September 2021 and July 2023. The complaint also says Toast's advertised '$0' hardware plan is not actually free, since costs are recovered through higher card processing fees. _Anyone weighing restaurant POS contracts can track how this fee dispute unfolds on daily.dev._ ### How much does a Toast subscription typically cost restaurants per month? Restaurants pay around $900 a month on average for auto-renewing Toast subscriptions, according to the FTC complaint. Restaurants that temporarily close still owe $85 a month for payment processing, and canceling early triggers an additional $150 fee for each remaining month on the contract. _Restaurant owners comparing POS pricing can follow cost disclosures like these on daily.dev._ ### What financial penalty did Toast charge a customer for early cancellation? Toast charged one customer $5,318.87 as an early termination fee after he canceled following four years as a customer, and refused to refund it, according to the FTC complaint. The lawsuit cites this as an example of undisclosed cancellation fees that trap restaurant customers in ongoing contracts. _Those evaluating vendor lock-in risk can keep up with cases like this on daily.dev._ ## Similar posts on daily.dev - [Travel app Hopper to pay $35M in FTC settlement over ‘unfairly’ charging hidden fees](https://daily.dev/posts/travel-app-hopper-to-pay-35m-in-ftc-settlement-over-unfairly-charging-hidden-fees-oq4cozpx7) · TechCrunch · 0 upvotes · 0 comments - [NYC's "Click to Cancel" rule is now in effect](https://daily.dev/posts/nyc-s-click-to-cancel-rule-is-now-in-effect-3wlcuw48n) · Hacker News · 0 upvotes · 0 comments - [Adobe faces fresh probe over subscription cancellation fees](https://daily.dev/posts/adobe-faces-fresh-probe-over-subscription-cancellation-fees-fiebkjmb6) · TechCentral · 0 upvotes · 0 comments - [Grubhub waives delivery and service fees on restaurant orders over $50](https://daily.dev/posts/grubhub-waives-delivery-and-service-fees-on-restaurant-orders-over-50-4mgxygkpw) · TechCrunch · 0 upvotes · 0 comments --- Tags: [#fintech](https://daily.dev/tags/fintech) [View this post on daily.dev](https://daily.dev/posts/ftc-and-eight-states-sue-toast-over-hidden-fees-and-hard-to-cancel-plans-rd2dwfugy) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"FTC and eight states sue Toast over hidden fees and hard-to-cancel plans","url":"https://daily.dev/posts/ftc-and-eight-states-sue-toast-over-hidden-fees-and-hard-to-cancel-plans-rd2dwfugy","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/ftc-and-eight-states-sue-toast-over-hidden-fees-and-hard-to-cancel-plans-rd2dwfugy"},"datePublished":"2026-10-29T20:45:44.980Z","dateModified":"2026-10-29T20:48:02.272Z","description":"The FTC and eight states have sued Toast, the restaurant software and payments company, over hidden fees and hard-to-cancel contracts. 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The complaint also says Toast's advertised '$0' hardware plan is not actually free, since costs are recovered through higher card processing fees. Anyone weighing restaurant POS contracts can track how this fee dispute unfolds on daily.dev."}},{"@type":"Question","name":"How much does a Toast subscription typically cost restaurants per month?","acceptedAnswer":{"@type":"Answer","text":"Restaurants pay around $900 a month on average for auto-renewing Toast subscriptions, according to the FTC complaint. Restaurants that temporarily close still owe $85 a month for payment processing, and canceling early triggers an additional $150 fee for each remaining month on the contract. 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