Music streaming service Spotify is hit with a class-action lawsuit over its discontinued Car Thing device.
The lawsuit, filed on Tuesday (May 28) in the U.S. District Court for the Southern District of New York, accuses Spotify of misleading consumers by selling products they knew were outdated.
Spotify launches in 2021 and goes public in the US the following year Car matter Described as “Spotify’s smart player that fills your car with music, news, entertainment, conversation, and more.”
However, due to factors such as pricing, inflationary pressures, and supply chain difficulties, Spotify announced that it will cease production of Car Thing in July 2022.
“First, we tested multiple price points and, frankly, we haven’t seen the volume at the higher prices to make the current product financially viable,” Spotify’s chief financial officer said. Paul Vogel Said that at the time.
“Second, rising inflation and parts costs, coupled with the extended lead times required to order parts, have significantly changed the risk-reward that continues to favor further product development,” the executive added.
“Our goal with Car Thing in the U.S. is to learn more about how people listen in their cars. In July 2022, we announced that we would cease further production, and now it’s time to say goodbye to these devices once and for all.
Spotify spokesperson
Recently, the company confirmed that existing equipment will be completely out of service by December 9, 2024.
A Spotify spokesperson said in a statement technical art Friday (May 24): “Our goal with Car Thing in the U.S. is to learn more about how people listen in their cars. In July 2022, we announced that we would cease further production, and now it’s time to say goodbye to these devices once and for all. .
In response to this latest decision, some consumers who purchased Car Thing hardware, a voice-controlled dashboard tablet, are suing Spotify, accusing the company of misleading consumers by selling products they knew would become obsolete.
In the complaint filed on Tuesday (May 28) in the U.S. District Court for the Southern District of New York, the plaintiffs allege that Spotify “failed to disclose and actively concealed their intention to cease servicing the product and/or their ability to provide services to outside parties.” .
They believe that consumers who purchase the device are “left with a paperweight worth $50 to $100.”
The plaintiffs said in the complaint that buyers would not have purchased the Car Thing if they had known that Spotify would stop supporting the product within months or years of purchase.
Buyers “wouldn’t buy Car Thing if they knew Spotify would stop supporting the product within months or years of purchase.”
Class action lawsuit against Spotify
The lawsuit, filed on behalf of multiple plaintiffs, seeks unspecified damages from all Car Thing buyers.
The case marks the latest legal challenge for Spotify, which has been embroiled in ongoing controversy over its move to bundle subscription services in the United States. Spotify decided in early March to reclassify its premium individual, duo and family subscription streaming plans into bundled subscription products, as these plans now offer access to audiobooks.
this Machinery Licensing Collective (MLC)an organization created under Music Modernization Act of 2018 In an effort to issue blanket mechanical licenses for qualifying streaming services in the United States, the company sued Spotify in early May for allegedly underpaying royalties to songwriters and publishers for bundling its services.
also, National Music Publishers Association (NMPA) An order letter has been issued to Spotify on behalf of members of the NMPA for allegedly hosting unlicensed lyrics on its platform.
As recently as last week, amid an ongoing dispute with Spotify, the National Medical Products Administration called on Congress to amend U.S. copyright laws to give U.S. music publishers the freedom to choose how to license their music to music streaming services. Payments to song copyright holders are governed by the Phonorecords IV Agreement.
“Major foreign-owned companies like Spotify should not have an unfair advantage over American songwriters because of outdated federal policies. By making one simple change, Congress can correct more than 100 years of wrongs in compulsory licensing and ensure song Authors and music creators continue to benefit from their creative endeavors. david israelisPresident and CEO of the State Food and Drug Administration.
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