Core Viewpoint - Spotify faces a class action lawsuit alleging deceptive business practices related to its Discovery Mode, which is claimed to prioritize songs from paying artists over personalized recommendations for users [1][2] Group 1: Lawsuit Details - The lawsuit was filed by Genevieve Capolongo in New York federal court, accusing Spotify of false advertising and unjust enrichment by misleading users about personalized recommendations [2] - Capolongo's suit describes Discovery Mode as a "pay-for-play scheme," asserting that Spotify frequently recommends major-label tracks that do not align with her listening habits, despite promises of a personalized experience [3] - The suit compares Discovery Mode to illegal payola practices, suggesting that Spotify's recommendations act as gatekeepers similar to traditional radio DJs [4] Group 2: Discovery Mode Functionality - Discovery Mode allows artists to submit songs for algorithmic promotion in exchange for a 30% commission on royalties earned from streams, which has raised concerns about its impact on smaller artists [3][8] - Spotify acknowledges that "commercial considerations" may influence recommendations but claims it does not disclose which songs are promoted commercially versus organically, leading to allegations of consumer deception [5] - The program reportedly increases user engagement metrics for artists, with average increases of 50% in song saves, 44% in playlist adds, and 37% in follows within the first month of use [8] Group 3: Industry Reactions - Discovery Mode has faced criticism from lawmakers who argue it may disadvantage smaller artists and compel them to accept lower royalties, raising concerns about the program's fairness [9] - Congressional representatives have previously expressed the need for transparency regarding tracks enrolled in Discovery Mode and the associated royalty discounts [9]