FTC warns restaurants about hidden fees and hard‑to‑cancel subscriptions from Toast
By OAS
· 1 min read · Scams
The FTC and several state attorneys general have filed a lawsuit claiming Toast Inc. charges hidden and unauthorized fees, adds unwanted add‑ons, and makes it difficult for restaurant owners to cancel services. The agency says these practices violate consumer‑protection laws.
In short
- Hidden fees and unauthorized add‑ons can erode restaurant profits.
- Canceling Toast may involve steep early‑termination fees or loan issues.
- The FTC considers these practices illegal and is pursuing action.
What it means for you
- Hidden fees can drain profits of small restaurants.
- Difficult cancellation processes may lock businesses into costly contracts.
- Misleading “24/7” support claims can leave owners without timely help when problems arise.
The details
What's happening
- The FTC, joined by multiple states, alleges Toast Inc. adds hidden fees, unauthorized charges, and subscription traps to its POS and fintech services for restaurants.
- The complaint says customers are enrolled in auto‑renewing subscriptions, charged for add‑on services without consent, and face undisclosed early‑termination fees.
- Toast’s advertised “Pay‑as‑you‑Go” plan is said to hide extra transaction fees and hardware costs.
- Cancelling requires a 30‑day written notice, multiple team approvals, and can result in steep early‑termination fees (e.g., a $5,318.87 charge reported).
- The company also claims 24/7/365 support, but customers report long delays and unavailability.
How it affects your business
- If you use Toast’s POS or financing, you may be paying hidden monthly fees, hardware charges, or a $0.99 per‑order fee added without notice.
- Canceling the service could trigger large termination fees or force loan repayment, potentially harming cash flow.
- Lack of real‑time support can cause downtime that impacts sales.
What to do
- Review your Toast contract and billing statements for unexpected add‑on charges, hardware fees, or early‑termination penalties.
- Contact Toast’s customer‑care team to confirm the exact cancellation process and any fees you may owe.
- Consider alternative POS solutions that offer transparent pricing and clearer support policies.
- Report any deceptive practices to the FTC at ReportFraud.ftc.gov.
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