Car Thing Lawsuit Against Spotify Dropped Following Customer Refund Program

Car Thing Lawsuit Against Spotify Dropped Following Customer Refund Program

By Marcus Bennett

December 4, 2024 at 12:58 AM

Spotify has begun issuing refunds for its discontinued "Car Thing" device, leading to the voluntary dismissal of a class action lawsuit against the company. The lawsuit was filed after Spotify announced plans to decommission the device on December 9th without initially offering refunds to customers.

Spotify Car Thing device display

Spotify Car Thing device display

After significant customer backlash, Spotify revised its position and now offers refunds to customers who purchased the Car Thing directly from the company and can provide proof of purchase. However, devices bought from third-party sellers are not eligible for refunds.

The $90 device continues to be sold on platforms like eBay, despite its impending deactivation. An active Reddit community has emerged focused on hacking and developing alternatives for the Car Thing.

This situation reflects Spotify's broader focus on profitability and operational efficiency, including:

  • Discontinuation of hardware development initiatives
  • Classification of most plans as bundles to reduce mechanical royalties
  • Expansion of legal and publishing teams to handle related challenges

In response to these changes, Spotify has recently posted several key positions:

  • 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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