Furious Customers Drop Spotify Car Thing Lawsuit

A consumer group has dropped a class action lawsuit against Spotify over the company’s recent decision to discontinue its short-lived “Car Thing” device, alleging that users are left with a “useless product” after using the streaming device.

The case, filed in May, comes just days after Spotify announced that Car Thing — a device it launched in 2021 to play music in cars — would be disabled in December, with customers saying the move left them “with nothing but a $50-$100 paperweight.”

But less than two months later, lawyers for the jilted consumers said on Tuesday (July 9) they would withdraw their lawsuit, a decision that came without explanation and with no indication that any settlement had been reached with Spotify.

In their original complaint, the affected buyers claimed that Spotify refused to issue a refund, and at the time of the lawsuit, the company’s deactivation FAQ did not mention a refund. It simply informed users that Spotify “does not offer any replacement options” and urged them to consider “safely disposing of the device in accordance with local electronic waste guidelines.”

But after news of the lawsuit spread, Spotify’s website was updated to include a new section on refunds. In the updated text, Spotify tells users: “Those seeking a refund may contact customer service with proof of purchase to discuss their options.”

It’s unclear whether the move to more explicitly offer refunds led to the lawsuit being dropped, and neither side immediately responded to requests for more information. However, the voluntary dismissal was “without prejudice,” meaning the plaintiffs could refile the case at some point in the future if they choose to do so.

Spotify announced the Car Thing in April 2021, saying it would give users a “seamless and personalized in-car listening experience.” The product — a touchscreen with a physical knob that still requires access to a smartphone — launched in February 2022 for $89.99. Just months later, however, Spotify said it would discontinue production, telling investors that “we honestly haven’t seen the volume at the higher price points that would make the current product financially viable.”

Then in May, Spotify warned users that it would stop supporting the devices entirely. The company told users that “this was not a decision we made lightly” and offered a customer support link to “make sure you have a good place to go if you have any questions.” A week later, the company confirmed in a public statement that the move, set to go into effect on December 9, would render the devices completely unusable.

On May 28, three Car Thing purchasers — Hamza Mazumder, Anthony Bracarello, and Luke Martin — filed a lawsuit accusing Spotify of violating state and federal law by tricking customers into buying a “useless product.”

“Had plaintiffs and other class members known that Spotify had manufactured Car Thing with the potential for the product to fail at any time after its launch, and that Spotify had had complete discretion to do so, they would not have purchased Car Thing or would have paid significantly less for it,” the lawsuit says.