Spotify Discovery Mode Arbitration Update

This case alleges that Spotify deceived its free and paid subscribers by marketing its playlists and music recommendations as personally curated for each listener, while secretly promoting certain artists and songs because those artists accepted reduced royalty payments through Spotify’s “Discovery Mode” program, a practice the lawsuit compares to “modern digital payola.” The original class action complaint was filed in November 2025 by plaintiff Genevieve Capolongo in the Southern District of New York. On April 30, 2026, Judge John G. Koeltl granted Spotify’s motion to compel arbitration and dismissed the class action allegations with prejudice, noting that the plaintiff had agreed to Spotify’s Terms of Use containing a mandatory arbitration clause. The case is now stayed pending individual arbitration through National Arbitration and Mediation. Labaton Keller Sucharow, through its Lantern platform, is currently investigating and accepting new clients for individual mass arbitration claims.