Toast Responds To FTC Lawsuit, Intends To Vigorously Defend Against Claims

Toast (NYSE:TOST) responded to the lawsuit filed today by the Federal Trade Commission (FTC):

We strongly disagree with the allegations in the lawsuit filed by the FTC and will vigorously defend the Company against the FTC’s claims.

In this matter, the FTC is seeking to apply the Restore Online Shoppers' Confidence Act (ROSCA) — a law Congress passed to address certain online subscription practices — to Toast's commercial agreements with its restaurant customers. No court has held that ROSCA applies to negotiated business-to-business agreements, and we don't believe it applies here. Such an application has the potential to rewrite the laws of commercial contracts and disrupt business-to-business providers across the economy, ultimately resulting in less competitive terms and more harm to small businesses.

As previously disclosed in our last quarterly filing, Toast has been cooperating fully with the FTC's review of this matter since mid-2025 and has engaged in good faith throughout, including efforts to reach a resolution short of litigation. The facts of the investigation show Toast’s commitment to providing innovative solutions to restaurants in a competitive market. The FTC disregarded the information we provided showing the extent to which our restaurant customers negotiate their contracts. We are prepared to defend our business and fight this unprecedented action through litigation.

Nothing about today's news changes our customer service, pricing, or support. Nearly 200,000 business locations run on Toast because our platform helps them simplify operations and increase sales — and that commitment hasn't changed. The trust our customers place in us is the foundation of our business, and we are as committed as ever to helping them succeed.