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Toast Says Market Share Growth Shows FTC Lawsuit Is Groundless

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Toast Says Market Share Growth Shows FTC Lawsuit Is Groundless

Restaurant and retail technology provider Toast was surprised by a Federal Trade Commission (FTC) lawsuit announced last week and will not let it affect its plans to build a generational company, CEO Aman Narang said Tuesday (Nov. 3) during the company’s third quarter earnings call.

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“One of our values is, we are all in customer success,” Narang said. “If you talk to our customers, one of the things they will tell you is that we really live that value, and that is why we continue to grow and take share at the rate we are.”

Narang’s remarks came after the FTC and state authorities filed a lawsuit Thursday (Oct. 29) accusing Toast of imposing unauthorized charges, misleading businesses about pricing and making it difficult for customers to cancel their services.

Toast issued a response to the lawsuit the day it was filed, saying the company disagrees with the allegations and will vigorously defend itself against the FTC’s claims. The company said, and Narang reiterated during Tuesday’s call, that it believes the Restore Online Shoppers’ Confidence Act (ROSCA), which the FTC is seeking to apply in this case, does not apply to negotiated B2B agreements.

“If ROSCA were to apply to B2B custom-negotiated contracts in a B2B context, it would have huge implications for, really, the whole industry and business contracts in general,” Narang said.



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