Federal regulators and a coalition of eight state attorneys general have filed a joint lawsuit against point-of-sale technology provider Toast, alleging the company deceived restaurant clients and diners through undisclosed charges.
According to regulatory filings, the legal action targets practices involving hidden fees charged across point-of-sale services utilized by dining establishments. The joint enforcement effort underscores growing scrutiny from antitrust and consumer protection agencies regarding fee transparency within the restaurant technology sector.
Toast, a prominent provider of hardware and software solutions for the restaurant industry, has faced mounting questions concerning its billing practices and transaction processing costs. The latest development marks a significant escalation in regulatory oversight targeting technology platforms that operate intermediary services for hospitality businesses and consumers.