Toast Responds to FTC Lawsuit

(Low)

(Neutral)How Sentiment works

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

How Sentiment works How the balance works

Tags

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google

10/29/2026 - 02:12 PM EDT

BOSTON--(BUSINESS WIRE)-- 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.

About Toast

Toast [NYSE: TOST] is a global technology platform built for restaurant and retail businesses. From the busiest local restaurants and shops to large hospitality brands, Toast helps owners and operators manage their businesses more efficiently, drive guest demand, and build lasting success.

Toast integrates software, agentic AI, payments, financial technology solutions, and hardware with a broad partner ecosystem. Powering billions of purchases throughout local commerce, Toast delivers the precision and innovation required for modern restaurant and retail environments. For more information, visit www.toasttab.com.

Forward-looking Statements

This press release contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the context of the statement and generally arise when Toast or its management is discussing its beliefs, estimates or expectations. Such statements generally include the words “believes,” “plans,” “intends,” “targets,” “may,” “could,” “should,” “will,” “expects,” “estimates,” “suggests,” “anticipates,” “outlook,” “continues,” or similar expressions. These statements are not historical facts or guarantees of future performance, but represent the beliefs of Toast and its management at the time the statements were made regarding future events which are subject to certain risks, uncertainties and other factors, many of which are outside Toast’s control. Actual results and outcomes may differ materially from what is expressed or forecast in such forward-looking statements. Forward-looking statements include, without limitation, statements about the impact of FTC’s approach to the application of ROSCA. The forward-looking statements in this release are based on information available to Toast as of the date hereof, and Toast disclaims any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing Toast’s views as of any date subsequent to the date of this press release.

TOST-CORP