FTC and 7 states sue Toast over ‘$0’ pricing and hidden fees
The U.S. Federal Trade Commission and state attorneys general allege that Toast’s advertised free pricing conceals significant hidden charges and enforces unfair cancellation hurdles.
On October 29, 2026, the FTC, joined by attorneys general from Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma, and Utah, filed a lawsuit against Toast—a meal‑order platform—claiming that the company’s ‘$0’ pricing strategy is deceptive. Under the complaint, Toast’s marketing materials state that users can order food for free, while in practice customers face a series of add‑on fees, mandatory subscriptions, and steep cancellation penalties that are not clearly disclosed upfront. The lawsuit seeks statutory damages, injunctive relief, and a rule‑making directive that would compel more transparent pricing for app‑based food services. The case signals a broader regulatory push against pricing opacity in the online marketplace, potentially prompting major tech and e‑commerce firms to re‑evaluate their fee structures. Practitioners should advise clients involved in subscription or transaction‑fee models to review their disclosures, and stay alert to possible federal guidance that could tighten the definition of “free” services nationwide.