Spotify's "Car Thing" device is set to stop functioning by December 9, 2024. The decision has prompted a class action lawsuit from owners of the product. But what is the controversial device?
After announcing the Car Thing in 2019, Spotify released the product to customers with Premium subscriptions in October 2021, then to the general public in February 2022, selling it at $89.99. The streaming giant described the Car Thing as a "a smart player that could seamlessly fill your car with a world of music, news, entertainment, talk, and more."
Car Thing's "tactile navigational controls include buttons, a dial, and a back button, all durably constructed for repeated use," per Spotify.
The device was designed to provide a better in-car experience for Spotify users. The Car Thing allowed users to access Spotify's entire catalog of music and podcasts. Drivers could say "Hey Spotify" as a way to control what is playing.
The 3.97" touchscreen featured the traditional shuffle, rewind, pause/play, fast forward and repeat buttons of Spotify's interface. Drivers could also add "presets" of their favorite songs, artists, playlists, and podcasts.
Spotify claimed that Car Thing users "were listening to Spotify in the car more than they had before." They also stated that the Car Thing made it "simpler" for customers to play "exactly what they wanted," citing the "ease" of the product interface and the "Hey Spotify" feature.
In July 2022, less than six months after fully launching the product, Spotify announced that it would discontinue production of the Car Thing. Earlier this month, a Spotify representative said that it is now "time to say goodbye to the devices entirely."
Spotify Chief Financial Officer Paul Vogel said that the company "frankly haven't seen the volume at the higher prices that would make the current product financially viable." He also pointed to "rising inflation and component costs, coupled with the expanded lead time needed to order parts" as a reason to ditch production of the product.
Sales of the Car Thing ceased in October 2022.
A message from the company on carthing.spotify.com reads: "Car Thing is being discontinued and will no longer be operational after December 9, 2024. Thank you for being on this journey with us, safe travels. For more information, visit our FAQ."
Another statement by the company says that Spotify is "switching gears" and working on "new innovative ways" to enhance user's drives.
"Thank you for being on this journey with us, safe travels," concludes the message.
Car Thing owners are now suing the streaming giant in a class action lawsuit filed with the U.S. District Court for the Southern District of New York. Plaintiffs argue that the company "failed to disclose and actively concealed their intent to discontinue service to the product and/or their ability to externally discontinue usage of the products."
They also claim that Spotify used "deception, deceptive acts or practices, fraud, misrepresentations, or concealment" while selling the Car Thing. Plaintiffs also allege that the Car thing was "only functional for a commercially unreasonable period of time."
The suit details that the Plaintiffs would not have purchased the device if they knew that Spotify had the "ability to brick the product at any point." Members of the suit are seeking "actual damages, injunctive relief, restitution and/or disgorgement of profits, statutory damages, attorneys' fees, costs, and all other relief available to Plaintiffs and the Class."
Spotify has yet to publicly respond to the suit.
Spotify is also receiving backlash from the National Music Publishers' Association after the streaming service introduced "bundled" streaming packages that reduce royalties for artists and songwriters. Spotify is being sued by the Mechanical Licensing Collective.
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