FTC and states sue Toast over hidden fees and subscription issues

The Federal Trade Commission along with eight states have filed a lawsuit against Toast, a restaurant software company, accusing it of enrolling customers in unwanted add-on services and obscuring the terms for canceling subscriptions, according to Inc.

The complaint also alleges that Toast continued billing some businesses even after they attempted to cancel, raising concerns about the company's billing practices.

Toast has responded by stating it will vigorously defend itself against the allegations, indicating the company disputes the claims made by the FTC and the states.

This legal action highlights ongoing regulatory scrutiny of subscription-based business models and billing transparency in the software industry.