Utah has joined the Federal Trade Commission, six other states, and two local governments in a lawsuit against Toast, Inc., alleging the company misled restaurant owners through deceptive pricing, false customer support claims, and hidden fees. According to an October 29 statement from the Utah Attorney General, the lawsuit was filed on Thursday by a bipartisan coalition.
Utah Attorney General Derek Brown stated that Toast promised restaurant owners $0 for hardware and 24/7 customer service, but the complaint alleges neither promise was kept. The state is bringing its claims under the Truth in Advertising Act, which prohibits deceptive trade practices. The lawsuit alleges that while Toast advertised $0 pricing for point-of-sale products, none of those products are actually priced at $0.
The complaint further alleges that Toast advertised 24/7/365 customer support, yet customers frequently report difficulty reaching support at any hour. Additionally, the lawsuit claims Toast charges multiple fees that are not clearly and conspicuously disclosed, including add-on subscriptions that customers did not agree to and early termination fees ranging from $5,000 to $17,000.
The legal action also addresses issues with cancellation and online order fees. The complaint alleges that Toast's cancellation process is cumbersome and often delays account deactivation for months, during which time the company continues to charge customers. Furthermore, the suit claims Toast has charged restaurant customers fees on some online orders without their consent, with those fees going directly to Toast rather than being refunded to restaurants or customers.
Toast provides point-of-sale hardware, software, and payment processing services to small businesses within the restaurant industry. The coalition seeking court intervention is asking Toast to stop violating state and federal laws and to pay damages and civil penalties. Joining Utah in the suit are the Attorneys General of Colorado, Florida, Illinois, Iowa, Nebraska, and Oklahoma, as well as the city of San Francisco and the county of Los Angeles.
