A search of the public record turns up one federal Townsquare Interactive lawsuit, filed in 2016 and voluntarily dismissed within two months, along with a steady pattern of consumer complaints about website ownership, cancellation, and billing. No public judgment has been entered against Townsquare Interactive itself. Separate cases involving its parent, Townsquare Media, exist but do not concern the digital marketing division that sells websites, SEO, and social media services to small businesses.1Townsquare Interactive. About Us
The 2016 Pascazi Federal Lawsuit
The one federal case directly naming Townsquare Interactive is Pascazi Law Offices PLLC v. Townsquare Interactive et al., docketed as No. 7:16-cv-07719 in the U.S. District Court for the Southern District of New York after removal from Dutchess County state court.2PACER Monitor. Pascazi Law Offices PLLC v. Townsquare Interactive et al. Pascazi Law Offices sued under the federal computer fraud statute, 18 U.S.C. ยง 1030, with an initial demand of $5 million. The public docket summary does not lay out the underlying factual allegations.
The case did not last long. The parties filed a stipulation of voluntary dismissal, and the court closed the matter on November 21, 2016, less than two months after filing. The dismissal was entered with prejudice against both Townsquare Interactive and Townsquare Interactive LLC, which barred Pascazi from refiling the same claims. No settlement terms were made public. Beyond this case, the public record does not show additional lawsuits filed directly against Townsquare Interactive.
What Customers Are Actually Complaining About
Formal litigation against Townsquare Interactive is thin, but the Better Business Bureau and Yelp show a consistent set of grievances. If you are researching the company because you are thinking of hiring it, or trying to leave, the recurring themes matter more than the docket.
Who Owns Your Website When You Leave
The complaint that comes up most often involves what happens when the relationship ends. Customers have reported believing they would own their site outright, then learning at cancellation that Townsquare Interactive keeps the design, templates, and source code. Clients are typically entitled to their own content, and some have said they were charged a content transfer fee to retrieve even that. Others reported that their sites were taken down immediately after cancellation.
The company’s own terms of service, last updated in March 2026, confirm the arrangement. Townsquare retains ownership of all “Townsquare-Furnished Material,” which includes source code, templates, and designs.3Townsquare Interactive. Terms of Service The client owns their content; the underlying website structure belongs to Townsquare.
Cancellation and Auto-Renewal
The second cluster of complaints is about the difficulty of getting out. Customers describe mandatory 30-to-90-day cancellation notice windows, auto-renewal clauses that lock them into additional terms, and continued billing after they submit cancellation requests. Some report needing to file a formal BBB complaint before charges stopped or a refund arrived.
Pricing, Fees, and Service Quality
Billing is the third theme. Customers have flagged monthly hosting fees of $129, which they say is well above the industry average of roughly $10 to $30 per month. Extra charges for website modifications, new pages, and rush work have caught some clients off guard. On the service side, complaints cite websites that were not delivered inside the promised 10-to-14-day window, search engine rankings that failed to improve or actively declined, and account managers who went unresponsive after the sale. One customer summarized it this way: after the sales pitch ended, “not much happened.”
Townsquare Interactive holds an A-plus rating with the Better Business Bureau. That rating reflects how the company responds to complaints, not overall customer satisfaction or review scores.
Contract Terms Worth Reading Before You Sign
Several provisions in the March 2026 terms of service line up with the friction points customers describe.3Townsquare Interactive. Terms of Service The agreement gives Townsquare broad discretion to add, modify, or discontinue services, with 30 days’ written notice before discontinuing a paid feature. The company can suspend or terminate a client’s account immediately for contract violations, failure to maintain accurate billing information, or activity Townsquare deems a security or reputational risk. Clients terminated on those grounds are not entitled to refunds.
The terms also make clients liable for messaging-traffic fines tied to SMS or MMS violations. Those fines can range from a few hundred to several thousand dollars and are typically billed one month after the violation occurs. The publicly available terms do not spell out a specific contract length or early termination fee, so those numbers likely appear in the individual order document a client signs at the point of sale. Ask to see them in writing before signing.
Lawsuits Involving the Parent Company, Not Townsquare Interactive
Two other cases turn up in searches for “Townsquare” litigation, but neither involves the Townsquare Interactive division. In 2025, Townsquare Media won a $1,154,097 breach-of-contract judgment against furniture retailer Regency Management Services over unpaid radio and digital advertising invoices from December 2019 through May 2021, in a case before Judge Kenneth M. Karas in the Southern District of New York.4Westfair Online. Townsquare Media Awarded $1.2M for Old Advertisements In April 2026, the Second Circuit issued a mixed copyright ruling in Richardson v. Townsquare Media, involving videos embedded on the hip-hop news site XXL, which Townsquare Media owns.5FindLaw. Richardson v. Townsquare Media, Inc.
Both cases concern Townsquare Media, the parent radio and media company, not the digital marketing division that sells websites and SEO to small businesses. Neither judgment or ruling affects Townsquare Interactive clients directly.