FTC and eight states sue Toast over alleged hidden fees in restaurant payments

The FTC and eight US states have filed a lawsuit against Toast, a point-of-sale services provider, alleging it charged hidden fees to restaurant clients and their customers, according to Payments Dive. The complaint centres on undisclosed charges that may have affected both businesses and consumers using Toast’s payment systems.

This legal action signals increased regulatory focus on fee transparency in the payments sector. Banks and payment firms working with retail and hospitality clients may face closer examination of their own fee structures. Firms should review disclosure practices to avoid similar scrutiny.