Overview
- New York subscriber Genevieve Capolongo filed the Nov. 4 federal class action alleging Discovery Mode and other undisclosed deals sell algorithmic visibility and deceive paying users expecting personalized recommendations.
- The complaint brings claims under New York false advertising and deceptive practices laws, alleges unjust enrichment, and cites Federal Trade Commission endorsement guidelines.
- Discovery Mode lets artists flag tracks for algorithmic consideration in Radio, Autoplay and certain Mixes in exchange for reduced per‑stream royalties, commonly reported as roughly a 30% commission on boosted streams, and the suit says listeners are not told which songs are promoted.
- Spotify rejected the filing as inaccurate, saying Discovery Mode does not buy plays, does not affect editorial playlists, is not used in Discover Weekly or the AI DJ, and is clearly disclosed, adding it is widely used by independent artists.
- The consumer suit arrives days after rapper RBX filed a separate class action in Los Angeles over alleged fraudulent streams, increasing scrutiny of Spotify’s recommendation systems and payouts, with no court rulings issued yet.