Spotify faces lawsuits over playlist payola and fake streaming
A Spotify user filed legal action on Tuesday, claiming the platform misleads subscribers by allowing record companies to increase track exposure through lower payment rates while advertising playlists as tailored suggestions.
Genevieve Capolongo brought the complaint in Manhattan federal court, describing the Discovery Mode program as contemporary payola and seeking class-action designation for 100 members with damages exceeding $5 million. The feature enables artists and labels to designate preferred songs for algorithm-driven playlists. Capolongo states she joined in September 2023 and repeatedly encountered major-label releases despite favoring independent musicians. The suit alleges Spotify markets itself as providing organic recommendations while burying language about commercial influences on its suggestions. Subscribers pay $11.99 monthly for individual accounts.
Spotify disputed the claims, stating they mischaracterize how Discovery Mode operates. The company said the program affects only Radio, Autoplay, and certain Mixes rather than flagship features like Discover Weekly or AI DJ. A separate class-action filing from rapper RBX alleges fraudulent streaming through automated accounts has caused financial damage to legitimate artists, with billions of inauthentic plays attributed to Drake between January 2022 and September 2025.
