Spotify Car Thing Lawsuit Dismissed Following Customer Refund Program

Spotify Car Thing Lawsuit Dismissed Following Customer Refund Program

By Marcus Hartley

December 4, 2024 at 12:58 AM

Spotify has voluntarily dismissed the class action lawsuit over its discontinued "Car Thing" device after implementing a refund policy for affected customers. The company initially announced plans to discontinue the Car Thing device on December 9 without offering refunds, prompting legal action from dissatisfied users.

Spotify Car Thing device display

Spotify Car Thing device display

In response to mounting criticism and legal pressure, Spotify revised its stance and began offering refunds to customers who purchased the device directly from the company and could provide proof of purchase. However, the refund policy excludes devices bought through third-party sellers, leaving some users unable to receive compensation.

Despite the $90 retail price tag, third-party marketplaces like eBay continue to list the soon-to-be-defunct device for sale, though buyers may be unaware of its impending deactivation. A community of enthusiasts has emerged on Reddit, focusing on Car Thing hacking and development.

Spotify Car Thing product timeline

Spotify Car Thing product timeline

The situation reflects Spotify's broader focus on profitability and operational efficiency. The company has shown little interest in developing new hardware products and has implemented other cost-saving measures, including reclassifying most subscription plans as bundles to reduce mechanical royalty payments.

Spotify Car Thing device display screen

Spotify Car Thing device display screen

In response to these changes and resulting legal challenges, Spotify has begun expanding its legal team with new positions focused on publishing, including roles for financial analysts, legal counsel, and partnership management.

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