Overview
- New York subscriber Genevieve Capolongo filed a federal class action on November 4 alleging Spotify misleads users by letting financial incentives shape recommendations.
- The complaint says Discovery Mode boosts selected tracks in limited algorithmic contexts in exchange for reduced per‑stream royalties, likening the setup to modern payola and seeking restitution, punitive damages and mandated disclosures.
- Spotify called the allegations “nonsense,” saying Discovery Mode only influences Radio, Autoplay and certain Mixes, does not buy plays or affect editorial playlists, and is not used in Discover Weekly or DJ.
- Capolongo cites New York false advertising and deceptive practices laws, unjust enrichment and alleged violations of Federal Trade Commission endorsement guidance tied to undisclosed promotions.
- Reporting notes Discovery Mode launched in 2020 with an approximate 30% commission on affected royalties, and the lawsuit arrives days after a separate RBX class action over alleged fraudulent streams.