Spotify Car Thing Lawsuit Dismissed as Company Issues Customer Refunds

Spotify Car Thing Lawsuit Dismissed as Company Issues Customer Refunds

By Marcus Stevenson

December 4, 2024 at 12:59 AM

The class action lawsuit against Spotify over its discontinued "Car Thing" device has been voluntarily dismissed following the company's decision to issue refunds to affected customers.

Spotify Car Thing device display

Spotify Car Thing device display

Initially, Spotify announced in May that Car Thing would be discontinued on December 9 without offering refunds. This decision prompted significant backlash from customers who had purchased the $90 device, leading to a class action lawsuit.

In response to the legal pressure, Spotify reversed its position and began offering refunds to customers who:

  • Purchased the device directly from Spotify
  • Could provide proof of purchase

Notable limitations of the refund policy:

  • Excludes devices purchased from third-party sellers
  • Doesn't address units still being sold on platforms like eBay

The situation reflects Spotify's broader focus on profitability and operational efficiency, with the company also:

  • Moving away from hardware development
  • Implementing cost-saving measures in other areas
  • Reclassifying subscription plans as bundles to reduce mechanical royalties

In response to these changes, Spotify has expanded its legal team by posting new positions focused on publishing, including:

  • Publishing-deal financial analyst
  • Associate general counsel for publishing
  • Head of songwriter and publisher partnerships

Spotify Car Thing product timeline

Spotify Car Thing product timeline

Spotify Car Thing device display screen

Spotify Car Thing device display screen

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