Spotify accused of “modern payola” in lawsuit over Discovery Mode

Posted On November 6, 2025November 6, 2025

Spotify is in hot water. The company is now facing a class action lawsuit, which claims that the Discovery Mode, as well as the editorial playlists, are a “modern form of payola”.

The new lawsuit was filed on November 5th in New York. As per Billboard, the lawsuit reads, “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.”

Consequently, the lawsuit alleges that the recommendation tools are deceptive, acting as a “pay-for-play” programme. And yet, the streaming platform uses the tool to mislead consumers into believing that the recommendations are neutral, based on personal taste.

Spotify user Genevieve Capolongo filed the case. Her lawyers say that she seeks to represent the “millions” of listeners who are misled. The idea came from the fact that she has used the discovery tool for years, but “kept hearing the same major-label tracks” that “bore little resemblance to her listening habits.”

Spotify has responded, branding the claims “nonsense”. They urged users to read the detailed explanation of the tool that is already online.

In their statement response to Billboard, “Not only do they misrepresent what Discovery Mode is and how it works, but they are riddled with misunderstandings and inaccuracies. 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.”

Nevertheless, her lawyer hit back: “Telling users that ‘commercial considerations may influence’ recommendations does not reveal which songs are being promoted commercially and which are being recommended organically. Without that specificity, users cannot distinguish between genuine personalization and covert advertising.”

Similarly, Discovery Mode, which was first unveiled in 2020, has been the subject of a Congressional investigation into the evident similarities to payola (the practice of paying radio stations for airplay). The platform does offer a link to an ‘About Recommendations’, but the new lawsuit alleges that this isn’t nearly enough clarity.

Capolongo’s lawyers write, “Telling users that ‘commercial considerations may influence’ recommendations does not reveal which songs are being promoted commercially and which are being recommended organically. Without that specificity, users cannot distinguish between genuine personalization and covert advertising.”

The lawsuit, being filed in New York, suggests that Spotify’s conduct violates New York state law with false advertising and deceptive practices.

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