Toast Responds to FTC Lawsuit

The Federal Trade Commission has filed a lawsuit against Toast (NYSE: TOST), the restaurant technology platform, alleging violations of the Restore Online Shoppers' Confidence Act, known as ROSCA.

Toast said it disputes the allegations and intends to contest the lawsuit in court. The company argued that ROSCA, a law enacted by Congress to address certain online subscription practices, has never been applied by any court to negotiated business-to-business agreements, and that such an application would be unprecedented.

According to a statement from Toast, the company has been cooperating with the FTC's review of the matter since mid-2025 and had attempted to reach a resolution before the case proceeded to litigation. Toast said the FTC did not take into account information the company provided regarding how its restaurant customers negotiate their contracts.

Toast serves approximately 200,000 business locations and said its customer service, pricing, and support will not change as a result of the lawsuit. The matter had previously been disclosed in the company's most recent quarterly filing.

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