The $50 Handshake, Rebooted: Spotify’s Algorithmic Payola Faces Its Day in Court

A class action filed in SDNY alleges Spotify engages in undisclosed pay-for-play via its Discovery Mode and playlist systems, misleading subscribers about “personalized” recommendations. The complaint traces payola’s history, argues Spotify’s practices violate consumer protection and FTC endorsement principles, and seeks damages and injunctive relief requiring clear disclosure of commercially promoted tracks. If successful, this could force transparency changes across streaming, affecting how music is promoted and discovered—implications that matter to composers and audio professionals who rely on streaming exposure and royalties.

Read More: https://musictechpolicy.com/2025/11/07/the-50-handshake-rebooted-spotifys-algorithmic-payola-faces-its-day-in-court/