Spotify pushed again towards a brand new class-action lawsuit filed in federal court docket that accuses the streaming large of reviving payola by way of its controversial Discovery Mode function.

The criticism, filed Tuesday (November 4) in Manhattan by New York resident Genevieve Capolongo, claims Spotify misleads subscribers by selling algorithm-based playlists like “Discover Weekly” and its AI-powered “DJ” whereas allegedly permitting labels to pay for elevated visibility by way of royalty reductions.

Capolongo alleges the platform “charges listeners for the privilege of being deceived,” arguing Spotify fails to reveal that some playlist suggestions are influenced by monetary preparations.

The lawsuit compares the observe to the well-known radio payola scandals of the twentieth century and seeks restitution, punitive damages and a court docket order requiring Spotify to disclose when cash or royalty offers issue into playlist placement.

In a pointy rebuttal, Spotify dismissed the accusations as baseless and riddled with errors.

“The allegations in this complaint are nonsense,” the corporate stated. “Not only do they misrepresent what Discovery Mode is and how it works, but they are riddled with misunderstandings and inaccuracies.”

Spotify defined that Discovery Mode permits artists to spotlight particular songs for algorithmic consideration in restricted areas comparable to Radio, Autoplay and choose Mixes.

The firm emphasised that the device doesn’t affect editorial playlists or assure performs.

“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 assertion continued.

Spotify additionally identified that the lawsuit misrepresents how Discovery Mode features, noting it’s not utilized in all algorithmic playlists, together with “Discover Weekly” or “DJ,” because the swimsuit claims.

“The complaint even gets basic facts wrong: Discovery Mode isn’t used in all algorithmic playlists, or even Discover Weekly or DJ, as it claims,” the corporate added.

The platform additional rejected the concept that Discovery Mode favors main labels, saying the function has been extensively adopted by unbiased artists.

“It’s also wrong to suggest Discovery Mode only supports major label artists. In fact, it’s been widely embraced by the independent music community, many of whom have praised the program publicly,” Spotify stated.

This lawsuit comes simply days after another class-action complaint was filed by West Coast rapper RBX, who accused Spotify of turning a blind eye to fraudulent streams that inflate numbers for top-tier artists like Drake whereas lowering payouts for smaller acts.

Both authorized challenges have intensified scrutiny of Spotify’s algorithmic transparency and its promotional practices. The Capolongo case was filed in federal court docket on November 4.

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