Overview
- Subscriber Genevieve Capolongo filed the 39-page class action in New York federal court on November 4, alleging deceptive practices, false advertising and unjust enrichment tied to Discovery Mode.
- The suit says Discovery Mode boosts tracks in exchange for lower per‑stream royalties, likening it to modern payola and citing alleged violations of FTC endorsement guidance.
- Spotify denies the claims, saying the complaint misstates basic facts and that Discovery Mode is limited to Radio, Autoplay and certain Mixes, does not affect editorial playlists, and is disclosed in the app and on its website.
- Forbes reports Discovery Mode operates on roughly a 30% commission on royalties earned in those specific algorithmic contexts, and Spotify says it is not used in Discover Weekly or the AI DJ.
- The filing seeks restitution, punitive damages and an injunction requiring disclosure when financial arrangements influence recommendations, arriving as a separate RBX class action targets alleged large‑scale fraudulent streaming.