Illinois Attorney General Sues Toast Over Alleged Hidden Fees and Subscription Practices

CHICAGO – Illinois Attorney General Kwame Raoul and the Federal Trade Commission have filed a lawsuit against restaurant technology company Toast Inc., alleging hidden fees, unauthorized charges and deceptive subscription practices targeting small businesses. The bipartisan lawsuit claims Toast automatically enrolled restaurants in unwanted services, made it difficult to cancel subscriptions and charged unexpected early termination fees. The company provides restaurant point of sale systems, payment processing and financing services. The complaint also alleges Toast charged restaurant customers an undisclosed 99 cent fee on certain online orders between September 2021 and July 2023. Restaurants reportedly paid an average of about $900 per month for Toast subscriptions, depending on the services and equipment used. The lawsuit further claims Toast failed to provide the 24 hour customer support it advertised and required some businesses with outstanding Toast Capital loans to immediately repay their balances if they canceled their subscriptions. The lawsuit alleges violations of federal consumer protection laws and Illinois consumer protection statutes. Toast has not been found liable, and the allegations will be addressed through the legal process.