Class action lawsuit accuses Spotify participating in “payola,” which allows record labels to secretly promote their artists on the streaming service’s Discovery mode.
The lawsuit, filed Tuesday in Manhattan federal court and first received All hip hopclaims that Spotify is engaging in a “modern form of payola” when they sell visibility on Discovery Mode playlists through undisclosed promotional offers, rather than providing paying users with a playlist that matches their actual music interests.
The 39-page complaint, filed by Spotify subscriber Genevieve Capolongo and other users, alleges that Spotify “charges listeners for the privilege of being duped” and Discovery mode creates “a false impression of neutral, personalized recommendations while financial incentives quietly drive the algorithm.”
“Spotify exploits this trust by promoting itself as a platform offering organic music recommendations… only to secretly sell those recommendations to the highest bidder,” the lawsuit states, adding that Capolongo's Discovery Mode playlist was filled with hits from Justin Bieber and Drake, whose streams are on the service subject of a separate claim.
“Even though Spotify's claims about personalization were false, [Capolongo] continues to suffer ongoing harm every time he uses the platform. She still cannot determine which songs are being recommended for legitimate editorial or personal reasons and which are being promoted due to undisclosed commercial agreements.”
The lawsuit seeks restitution, punitive damages and a court order requiring Spotify to disclose whether Discovery's regime is tainted by cash or royalty deals.
In a statement for Hollywood ReporterA Spotify spokesperson called the class action “nonsense” and said the lawsuit misstates “basic facts.” “Discovery Mode is a feature that artists can use to flag priority tracks for algorithmic consideration in a limited context: radio, autoplay, and specific mixes,” the streaming service said. “It does not purchase plays, does not influence editorial playlists, and is clearly listed in the app and on our website.”
Class action lawsuit filed just days after Spotify was attacked another lawsuit It claims the company “turned a blind eye” to “massive fraudulent streaming” on its platform, with Drake in particular being the beneficiary of “billions” of fake streams. The class action lawsuit, filed in federal court in Los Angeles, was led by rapper RBX, Snoop Dogg's cousin.
