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\n\tA class action lawsuit<\/a> accuses Spotify<\/a> of engaging in \u201cpayola\u201d to allow record labels to secretly promote their artists in the streaming service\u2019s Discovery Mode.<\/p>\n \n\tThe lawsuit, filed Tuesday in a Manhattan federal court and first obtained by All Hip Hop<\/a>, alleges that Spotify employs a \u201cmodern form of payola\u201d where they sell visibility on the Discovery Mode playlists via undisclosed promotional deals, instead of providing paid users with a playlist catered toward their actual music interests.<\/p>\n \n\tThe 39-page complaint, filed by Spotify subscriber Genevieve Capolongo and other users, argues that Spotify \u201ccharges listeners for the privilege of being deceived,\u201d with Discovery Mode creating a \u201cfalse impression of neutral, personalized recommendations when financial incentives are quietly driving the algorithm.\u201d\u00a0<\/p>\n \n\t\u201cSpotify exploits that trust by marketing itself as a platform that offers organic music recommendations \u2026 only to secretly sell those recommendations to the highest bidder,\u201d the lawsuit states, adding that Capolongo\u2019s Discovery Mode playlist was stuffed with hits by Justin Bieber and Drake, whose streams on the service are the focus of a separate lawsuit<\/a>.<\/p>\n \n\t\u201cDespite knowing that Spotify\u2019s representations about personalization were false, [Capolongo] continues to suffer ongoing harm each time she uses the platform. She still cannot discern which songs are recommended for legitimate editorial or personalized reasons and which are promoted due to undisclosed commercial arrangements.\u201d<\/p>\n \n\tThe lawsuit seeks restitution, punitive damages, and a court order requiring Spotify to disclose whether Discovery Mode is tainted by money or royalty deals.<\/p>\n