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Enforcement ActionLow RiskMultistate

Colorado AG and coalition sue Toast over subscriptions and auto-renewal practices

Toast, Inc.October 29, 2026Colorado Attorney General

Summary

Colorado, the FTC, and a bipartisan group of state attorneys general sued Toast, alleging misleading claims about its subscription services and financial products, undisclosed fees, and obstacles to cancelling subscriptions. The coalition is asking the court for an injunction, monetary relief, civil penalties, and other relief; the press release does not report an imposed penalty.

Remedy

The FTC and state coalition are asking the court for a permanent injunction, monetary relief, civil penalties, and other relief allowed under law. These are requested remedies; the press release does not report that the court has imposed them.

InjunctionMonetary Penalty

Contract Impact

Review vendor and customer agreements for clear auto-renewal terms, advance renewal and fee disclosures, recurring-charge authorization, and simple cancellation procedures that do not impose unnecessary hurdles. Check subscription terms, order forms, and product-marketing approval clauses to ensure advertised prices, cancellation fees, hardware costs, and customer-support availability match actual service. For agreements covering financial products, review representations, disclosures, and complaint-escalation obligations; update compliance warranties and audit rights to address applicable state auto-renewal laws and ROSCA. Employee agreements are not directly implicated by the allegations described.

Contract Search Terms

auto-renewal disclosuressubscription cancellation mechanismrecurring charge authorizationcancellation fee disclosuresubscription renewal noticedeceptive pricing representationscustomer support availability commitmentsfinancial product marketing claims

Laws Cited

Colorado auto-renewal statuteRestore Online Shoppers Confidence Act

Violation Types

Entity Details

Entity

Toast, Inc.

Industry

Technology

Multistate Coalition

Federal Trade CommissionArizona Attorney GeneralNebraska Attorney GeneralOklahoma Attorney General

Official Sources

Source Evidence

Entity Name
"Toast, a restaurant management and financial technology company"
Laws Cited
"Colorado’s auto-renewal statute"
Laws Cited
"the federal Restore Online Shoppers Confidence Act"
Violation Types
"failing to make disclosures or provide simple mechanisms for customers to cancel their subscription services."
Violation Types
"imposing a series of hurdles, which prevented customers from stopping recurring charges."
Remedy Summary
"are asking a court for a permanent injunction, monetary relief, civil penalties, and other relief allowed under law."

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