Spotify Car Thing Lawsuit Ends After Company Issues Customer Refunds

Spotify Car Thing Lawsuit Ends After Company Issues Customer Refunds

By Marcus Delano Thompson

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 lawsuit's conclusion came through a notice of voluntary dismissal without prejudice.

Spotify Car Thing device display

Spotify Car Thing device display

Initially, Spotify announced the discontinuation of Car Thing on December 9 without offering refunds. This decision sparked criticism from users who had purchased the $90 device, leading to the class action lawsuit. In response, Spotify revised its stance and began offering refunds to customers who bought the device directly from the company and could provide proof of purchase.

Key Points About the Car Thing Situation:

  • Refunds are only available for direct purchases from Spotify
  • Third-party purchases are not eligible for refunds
  • Some users continue to sell the device on eBay, despite its impending deactivation
  • An active Reddit community exists for Car Thing hacking and development

The situation reflects Spotify's broader focus on profitability and operational efficiency. The company has also implemented other cost-saving measures, including:

  • Classifying most plans as bundles to reduce mechanical royalties
  • Expanding its legal team with new publishing-focused positions
  • Adding roles such as publishing-deal financial analyst and associate general counsel

Spotify Car Thing product timeline

Spotify Car Thing product timeline

Spotify Car Thing device display screen

Spotify Car Thing device display screen

These changes indicate Spotify's shift away from hardware development and toward streamlining its core business operations. The company continues to adapt its strategies while managing legal and consumer relationships in response to these business decisions.

Related Articles

Previous Articles