A second class-action lawsuit has been filed against Spotify, accusing the streaming giant of committing “modern payola.”
The complaint, brought by New York subscriber Genevieve Capolongo, alleges that Spotify secretly sells visibility on its playlists through its “Discovery Mode” program and other undisclosed deals, deceiving paying users who expect personalized recommendations.
Capolongo contends she subscribed believing features like “Discover Weekly” were tailored to her tastes, only to realize mainstream acts such as Drake and Justin Bieber still dominated her feed.
The suit states that the company “charges listeners for the privilege of being deceived,” exploiting user trust.
The complaint further highlights that Discovery Mode allows labels to “pay” for boosted exposure by accepting lower per-stream royalty rates, a financial incentive that is not disclosed to users.
As the lawsuit states:
> “Spotify exploits that trust by marketing itself as a platform that offers organic music recommendations … only to secretly sell those recommendations to the highest bidder.”
Capolongo seeks restitution and a court order requiring Spotify to disclose when money or royalty discounts shape its recommendations.
The filing accuses the company of violating New York's false advertising laws and breaching Federal Trade Commission endorsement guidelines by treating playlist inclusion like an unmarked advertisement.
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