A consumer group has dropped a class-action lawsuit against Spotify over its recent decision to kill off the short-lived 'Car Thing' device, a case that claimed the streamer left users holding on to “a useless product”.
Filed in May, the case came just days after Spotify announced that the Car Thing – a device due out in 2021 to play music in a car – would be unveiled in December. Customers claimed the move left them with “nothing more than a paperweight that cost between $50 and $100.”
But less than two months later, consumer advocates said Tuesday (July 9) they would withdraw the lawsuit. The move was made without explanation and does not indicate that any kind of settlement has been reached with Spotify.
In their original complaint, the affected buyers claimed that Spotify had refused to offer refunds, and at the time of filing the lawsuit, the company's FAQ about deactivation made no mention of refunds. It simply told users that Spotify “does not offer any exchange options” and urged them to consider “safely disposing of your device in accordance with local e-waste guidelines.”
But after news of the lawsuit spread, Spotify's website was updated to include a new section covering refunds. In the updated text, Spotify tells users: “People requesting a refund can contact customer support with proof of purchase to discuss their options.”
It's unclear whether the move to more clearly offer refunds resulted in the lawsuit being dropped, and neither side immediately returned requests for more information. But the voluntary dismissal was done “without prejudice,” meaning prosecutors could retry the case at some point in the future if they choose.
Spotify announced Car Thing in April 2021, saying it would provide users with a “seamless and personalized listening experience in the car.” The product—a touchscreen with a physical dial that still requires smartphone access—launches in February 2022 for $89.99. But just months later, Spotify said it would stop production, telling investors they “honestly haven't seen the volume at the higher prices that would make the current product financially viable.”
Then in May, Spotify notified users that it would stop supporting the devices entirely. The company told users it was “not a decision we made lightly” and offered a link to customer service to “make sure you have the right place to contact if you have any questions.” A week later, the company confirmed in a public statement that the move, which will take effect on December 9, will render the devices completely inactive.
On May 28, three Car Thing buyers — Hamza Mazumder, Anthony Bracarello and Luke Martin — filed their lawsuit, accusing Spotify of violating state and federal laws by essentially tricking their customers into buying a “junk product.”
“If plaintiffs and other class members had known that Spotify was building Car Thing with the ability to brick the product at any point after it was introduced to the market and at Spotify's sole discretion, they would not have purchased a Car Thing.” or they would buy paid significantly less for them,” the lawsuit said.
