Music streaming giant Spotify finds itself at the center of a legal battle that questions whether the platform’s song recommendations are as personalized as users believe them to be.
A class action lawsuit filed on November 5 in New York accuses the company of prioritizing financial incentives over genuine user preferences when suggesting music through its algorithmic playlists. The legal action, brought by listener Genevieve Capolongo, takes aim at Spotify’s Discovery Mode feature, claiming the service has created a “pay-for-play” system that fundamentally misleads its subscribers.
According to the lawsuit, Capolongo experienced a pattern that didn’t match her actual listening behavior. She claims she “kept hearing the same major-label tracks” that “bore little resemblance to her listening habits.” The complaint goes further, alleging that Spotify “charges listeners for the privilege of being deceived.”
At the heart of the controversy is Discovery Mode, a tool Spotify offers to artists looking to expand their audience reach. While the feature is marketed as helping musicians connect with new listeners who enjoy similar styles, the lawsuit paints a different picture.
It argues that the feature creates a “false impression of neutral, personalized recommendations when financial incentives are quietly driving the algorithm.”
The legal filing doesn’t mince words about what it views as a breach of trust between the platform and its users. “Spotify exploits that trust by marketing itself as a platform that offers organic music recommendations — whether through its algorithmic or curated playlists — only to secretly sell those recommendations to the highest bidder,” the lawsuit states, according to Billboard’s reporting.
Spotify has pushed back firmly against these allegations, dismissing the claims as baseless. The company told Billboard that the lawsuit’s characterization of Discovery Mode amounts to “nonsense.”
“Not only do they misrepresent what Discovery Mode is and how it works, but they are riddled with misunderstandings and inaccuracies,” a Spotify representative explained. The company went on to clarify exactly how the feature operates within its ecosystem.
“Discovery Mode is a feature artists can use to flag priority tracks for algorithmic consideration in limited contexts: Radio, Autoplay, and certain Mixes. It doesn’t buy plays, it doesn’t affect editorial playlists, and it’s clearly disclosed in the app and on our website,” the representative stated.
The lawsuit comes at a time when Spotify faces scrutiny on multiple fronts. The platform has also been dealing with separate accusations regarding alleged widespread botting, with high-profile artists being cited as examples in those complaints.
As millions of subscribers rely on Spotify’s recommendations to discover new music daily, the outcome of this legal challenge could have significant implications for how streaming platforms communicate their recommendation processes to users.
For now, Spotify maintains that its Discovery Mode feature operates within clearly defined parameters and that the lawsuit fundamentally misunderstands how the technology works.