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ARTICLE · 06 NOVEMBER 2026

Federal, State, And Local Regulators Sue Toast Over B2B Advertising And Subscriptions

Crowell & Moring LLP
Crowell & Moring LLP
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Federal and state regulators have filed a lawsuit against Toast, alleging deceptive advertising practices, hidden fees, and barriers to cancellation in its restaurant technology services. The case joins a growing pattern of enforcement actions targeting misleading business-to-business sales practices, unexpected costs, and difficult service terminations across payment processing and business financing sectors.

United StatesConsumer Protection
Joanna Rosen Forster
Joanna Rosen Forster
Toni Michelle Jackson
Toni Michelle Jackson
Tiffany Aguiar
Tiffany Aguiar

What You Need to Know

  • Key takeaway #1

    The Toast lawsuit challenges hidden fees, subscription barriers and advertising promises made to business customers.

  • Key takeaway #2

    B2B providers face consumer-protection scrutiny that can produce monetary relief and industry bans.

  • Key takeaway #3

    Consumer protection remains an area of bipartisan cooperation among federal, state, and local regulators.

On October 29, 2026, the Federal Trade Commission (FTC) and attorneys general from Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma, and Utah, joined by Los Angeles County Counsel and the San Francisco City Attorney, sued Toast over allegedly deceptive advertising, hidden fees, and cancellation barriers. The bipartisan lawsuit shows that federal, state, and local regulators continue to work together on consumer protection, including claims involving business customers. Like the Seek Capital, First American Payment Systems, and newly announced Riverside Payments matters

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