FTC and Multiple States Sue Toast: Should Restaurant Owners Be Concerned About Hidden Fees and Vendor Lock-In?

Restaurant owners depend on their POS provider for far more than just processing transactions. Your POS system touches every part of your operation, including sales, labor, inventory, online ordering, reporting, customer service, and credit card processing.

When trust in your technology partner becomes a question, it is time to take a hard look at your options.

On October 29, 2026, the Federal Trade Commission (FTC), joined by California and the Attorneys General of Colorado, Florida, Illinois, Iowa, Nebraska, Oklahoma, and Utah, filed a lawsuit against Toast, Inc. and several affiliated companies. The lawsuit alleges hidden fees, unauthorized charges, unwanted add-on services, deceptive customer support claims, and practices that make it difficult for restaurants to cancel service.

Independent Sources and Official Filings

We encourage restaurant owners to review the lawsuit coverage and official filings directly rather than relying solely on commentary from any vendor, including us.

The following sources provide additional information about the lawsuit filed against Toast:

We believe restaurant owners should review multiple sources and make informed business decisions based on the available facts, their own experiences, and the needs of their restaurant.

Why Would Restaurant Owners Continue to Use a Company That Keeps Getting Into Trouble?

Restaurant operators work too hard to have their profitability impacted by hidden fees, surprise charges, poor support, or restrictive business practices. While the lawsuit is still being litigated and Toast has denied the allegations, restaurant owners should seriously ask themselves an important question:

Why continue to trust a POS provider that has faced years of customer complaints and is now the target of a lawsuit brought by the FTC and multiple state governments?

For a business platform that sits at the center of your restaurant's operations, trust and transparency matter.

The Allegations Against Toast

According to the complaint filed by the Federal Trade Commission and multiple state regulators, Toast allegedly:

Charged hidden and unauthorized fees.
Added products and services without proper customer consent.
Made cancellation difficult and burdensome.
Advertised customer support capabilities that some customers claim they did not receive.
Failed to adequately disclose certain fees and costs.

Toast has publicly denied the allegations and stated it intends to defend itself vigorously. However, restaurant owners should carefully evaluate these claims and consider whether they align with their expectations of a trusted long-term technology partner.

This Isn't the First Time Questions Have Been Raised

This latest lawsuit comes after years of complaints posted online by restaurant owners regarding customer service, contracts, billing practices, and cancellation experiences.

Be sure to read our previous article:

Toast POS Complaints, Lawsuits, BBB Reviews, and Customer Concerns

That article explores concerns raised by restaurant operators across the country and highlights why many businesses are actively exploring alternatives.

Now those concerns have escalated beyond reviews and complaints and into a formal legal action involving federal and state regulators.

Restaurant Owners Deserve Better Options

One of the most frustrating realities for restaurant owners is becoming locked into a single ecosystem where one company controls the POS software, payment processing, support, and ongoing costs.

The good news is there are excellent alternatives available.

Consider Credit Card Agnostic POS Systems

Many restaurant owners are discovering the advantages of credit card agnostic POS systems that allow them to choose their payment processor instead of being locked into a single provider.

Examples include:

SAM4s POS Systems
OrderCounter POS
Other open-payment restaurant POS platforms

These systems often provide:

Greater merchant processing flexibility
More competitive credit card rates
Transparent pricing
Local support options
Freedom to change processors when rates or service become unfavorable
Reduced vendor lock-in

Restaurant owners should never feel trapped by technology decisions.

The Real Cost of Staying Put

Many operators keep their current POS system simply because switching feels difficult. However, remaining with a provider that may not be serving your best interests can become much more expensive over time.

Potential costs include:

Higher processing fees
Monthly add-on charges
Reduced negotiating power
Limited flexibility
Inadequate support during critical business hours

For many restaurants, even a small savings in processing fees can translate into thousands of dollars annually.

What Restaurant Owners Should Do Right Now

Review your merchant processing statements.
Audit all monthly software and subscription fees.
Verify every add-on service is actually being used.
Review your contract for cancellation requirements.
Compare alternative POS systems.
Request an independent review of your current setup.

Even if you decide to stay with your current provider, understanding your options puts you in a stronger negotiating position.

Why Restaurant Owners Trust National Business Systems, Inc.

At National Business Systems, Inc., we believe restaurant owners deserve transparency, flexibility, and honest advice.

Unlike providers focused on locking businesses into a single payment ecosystem, we help restaurant operators evaluate solutions that fit their operational needs, budget, and long-term business goals.

Whether you operate a quick service restaurant, bar, food truck, fine dining establishment, or multi-location operation, we can help you identify the right POS solution without unnecessary restrictions.

Learn more about our restaurant POS systems, retail POS systems, cash registers, payment processing services, and business technology solutions at National Business Systems, Inc..

Looking for an alternative to Toast? Visit National Business Systems Restaurant POS Solutions to compare restaurant POS systems that offer flexibility, transparent pricing, local support, and freedom from processor lock-in.

We Can Help You:

Compare POS systems side-by-side
Review current processing expenses
Explore credit card agnostic solutions
Evaluate SAM4s POS Systems
Learn about OrderCounter POS
Improve reporting and operational controls
Reduce merchant service costs
Select the best platform for your restaurant

Important Note: The allegations discussed in this article originate from a lawsuit filed by the Federal Trade Commission and participating state regulators. Toast has publicly denied the allegations and has stated that it intends to defend itself in court. Readers are encouraged to review the source materials linked in this article and reach their own conclusions.

Final Thoughts

The FTC lawsuit against Toast does not determine the final outcome of the case. The courts will ultimately decide the merits of the allegations.

However, restaurant owners should pay attention when a POS provider becomes the subject of legal action involving federal regulators and multiple states.

Your POS system should help simplify your business, improve profitability, and support your growth. It should not create additional concerns regarding fees, support, transparency, or flexibility.

If recent developments have you questioning whether your current POS solution is still the best fit, now is an excellent time to evaluate alternatives that offer greater transparency, flexibility, and control.

National Business Systems, Inc. can help you compare your current solution against today's leading alternatives and determine whether a better option exists for your restaurant.

Ready for a Second Opinion?

If you're concerned about rising fees, vendor lock-in, contract limitations, or customer support issues, contact National Business Systems, Inc. today.

We can provide a no-obligation review of your current POS system and payment processing setup and help you determine whether solutions like SAM4s, OrderCounter, or other credit card agnostic platforms could save your business money while increasing flexibility.

Compare Restaurant POS Systems with National Business Systems, Inc.

National Business Systems, Inc. specializes in restaurant POS systems, retail POS systems, merchant services, cash registers, inventory management, and credit card agnostic payment solutions that help business owners maintain control of their technology and payment processing costs.

Don't wait until your next contract renewal to discover a better option.

Explore Alternatives to Toast POS

If your restaurant is evaluating alternatives to Toast, National Business Systems, Inc. can help you compare multiple restaurant technology platforms, including SAM4s POS systems, OrderCounter POS, and other restaurant management solutions that provide greater flexibility and payment processing freedom.

Visit National Business Systems, Inc. to learn more about restaurant POS systems designed to help restaurants reduce costs, improve operations, and maintain control over their payment processing relationships.

About National Business Systems, Inc.

National Business Systems, Inc. helps restaurants and retailers throughout Washington State and across the United States with POS systems, cash registers, payment processing, online ordering, inventory control, and business technology solutions.

Our specialties include:

Restaurant POS Systems
Retail POS Systems
SAM4s Cash Registers & POS Systems
OrderCounter POS Solutions
Credit Card Processing
Kitchen Printers & Online Ordering
Inventory Management
Multi-Location Reporting
Installation, Training & Support

Learn more about restaurant POS systems, retail POS systems, merchant services, cash registers, and payment processing solutions at:
National Business Systems, Inc. - Restaurant & Retail POS Solutions

National Business Systems, Inc.
Helping Restaurants Take Control of Their Technology, Payments, and Profits.

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Thursday, October 29, 2026

FTC Sues Toast: What Restaurant Owners Need to Know About Hidden Fees, Complaints, and POS Alternatives